Mark Dodd; 7/7/08
East Timor Prime Minister Xanana Gusmao has signed a $US14.4 million ($14.9 million) food security contract giving sole import rights to the vice-president of his political party - a deal that is ringing alarm bells at the UN and among the impoverished country’s main donors, including Australia. Dili-based diplomatic sources said they had strong concerns about the deal, seen as a blow against efforts to improve governance and transparency in one of Southeast Asia’s most troubled and poorest countries. Speaking on national television on Saturday night, Mr Gusmao defended the contract, saying it would ensure food security for the country at a time of need. A copy of the contract signed on May 7 - entitled “The Supply and Warehousing of White Rice” - which has been obtained by The Australian, shows Mr Gusmao’s signature authorising the procurement of 16,000 tonnes of white rice for $US14.4 million.
See: http://www.theaustralian.news.com.au/story/0,25197,23978535-2703,00.html
