President of the Democratic Republic of Timor-Leste

Opening remarks

H.E. Kay Rala Xanana Gusmão

At the

Workshop on Transparency and Accountability

in the Governance of the Oil Sector

Dili, 22nd March, 2004

Excellencies

Distinguished Panelists

Distinguished Guests and Participants

Ladies and Gentlemen

Timor-Leste is at the critical crossroad of a process, in which its dynamism will really be the result of what would be defined in the present circumstances, as a policy or policies of the State.

This seminar is intended to cover the issue of oil. And it is doing this with civil society. And also with the participation of the Government, through its bodies, that are directly or indirectly involved in this issue.

Oil is seen as our major wealth, and is hoped to be the potential that will take Timor-Leste to the progress and development and well-being of all the people.

Oil is understood as the element which will produce miracles for our country. Oil is also mentioned by donors to remind us that we should not continue to think of depending on the generosity from outside. Oil is also mentioned by us, to remind the donors that until it is sold and revenue generated, we need continued assistance from the international community.

As we are the poorest country in Southeast Asia and one of the ten poorest in the world, we do, however, have hope that in ten yearstime, we can rise above the uncomfortable poverty line in which we are placed today in the world.

But to this, we have to know our potential, and to this, civil society needs to undertake its true role, to debate ideas, to build a scientific framework to understand the issues. Civil society is not only the NGOs or the media. Civil society is the citizen who, free from any pressures or compromises, can speak on a determined issue.

And when we speak of citizen, we mean individuals, whose intellectual or political capacity gives credibility to their declarations and opinions. Civil society should not by nature play the role of opposition. Civil society should arm itself with a more pragmatic character, which is by qualification, to inform society, to transmit its knowledge to society, to influence the decision-making bodies, to call attention to the ruling institutions and to positively and seriously contribute to the debate of problems.

During the next precious two days, we will cover the subject of oil; an issue that should be viewed in its scientific, technical and legal implications of today; an issue that should be analyzed in the socio-economic and political impacts in the medium-term; an issue that should be studied for its consequences on a future of sustainability for the country.

Consequently, the ‘Timor Sea’ will be at the basis of the technical and scientific, and even legal discussions. I am aware that there exists much controversy on this, which generated a lot of ‘whys’ and ifs’ in the minds of people. This reveals concern and it is good that this occurs. However, what is asked is that we are objective and for this, expertise on the subject or knowledge of the issues is an important factor.

Ladies and gentlemen,

As I stated earlier, we are at the crossroad of a process, in which the participation of civil society is vital, as it will enrich ideas. All the ideas are valid, one by one or on their own,when there is no argument between them. An idea will result in being more valid when and because it responds to a concrete reality. This is important when dealing with issues of superior national interests.

And the national wealth, the oil, which can alleviate our people from extreme poverty, is obviously an issue of national interest that should mobilize the citizens, not only to concern themselves with the issue, but on how to lucidly participate and defend the policy of the Timorese State.

What policy? This is what we shall contribute with this Seminar.

Ladies and gentlemen,

I began with saying a ‘policy’ or ‘policies’. I will mention policies, those of which I believe to be fundamental, so that in 30 years time, future generations can continue to feel proud of being independent and remember their predecessorswith gratitude.

Our Constitution is the guarantor of the Democratic State that we are establishing in Timor-Leste. But we should never forget that there are many more democratic constitutions throughout the world that could not withstand the takeover of power by the ambitious and it is because of this, that we, the youngest nation, the first independent nation of the millennium, still witness wars and armed conflicts as a recourse to political problems in countries that have been independent for more than five decades.

Democracy is a process that takes time to consolidate itself. Only a democracy that is rooted in the day-to-day lives of the people, which allows for the conscientious and full participation of all the citizens in the development process of the country, can be the ultimate guarantor of our Constitution. The culture of democracy necessarily passes through a culture of citizenship, which embodies the conscience of rights and responsibilities.

The commitment of all for democracy is well known. There is also a general tendency to understand democracy as demanding rights, raising questions and pointing fingers. The tendency in our society to believe that rights belong to the person demanding them and that responsibilities belong to others is also known. As an individual, I believe that I only have the right to state what is wrong, but never do I take the trouble to understand that I also have the duty to suggest how it should be done.

Democracy can only be experienced when it is participative. And participation is to search for solutions to problems, from the highest State institutions to the bases, which are the communities in the hamlets, villages, sub-districts and districts. And we hope that the upcoming elections for the community leaders can produce an environment of greater responsibility in the heart of the communities.

Democracy can only become a reality when the Timorese live in harmony and when Timorese society begins to stop recalling the conflict of the past as a curse. Democracy can also become a reality, when there is no abuse of power by the institutions of the State. And democracy can only become a reality rewarding to our people, when political parties look at each other, not as enemies that should be opposed or rejected automatically, but as integral and fundamental components of the process, where differences are necessary but with the common objective to build.

We do not think that democracy is already consolidated in our country, as it requires that we honour it constantly in our actions. A democratic person is not the one who gives speeches but the one who respects the opinions of others.

A State should not be taken as being democratic just because it brandishes democratic values. But a State that honours the law which it makes, that makes an effort to honour justice as elemental factors of the Rule of Law, is democratic.

And in this effort, the involvement of State Institutions, political parties and civil society, should always set an example to the people.

Ladies and gentlemen,

Another national policy should be on the prevention and serious combat of corruption. And that can be only done with mechanisms which guarantee transparency and secure accountability on the actions of individuals or public and private bodies.

The commitment of all becomes important. It is vital to forge a culture of transparency of actions in society in general and in particular, in the State institutions. The small mistakes always open the path for greater errors.

Nowadays, there exists the negative tendency to achieve rapidly what we want, in other words, to quickly improve the conditions of living, thereby placing personal interests of comfort before national interests, that is, the interests of the people.

Public servants many times forget that they are servants of the State and instead become the beneficiaries. In society in general, now and then, the polemics of lack of transparency appear. In the private sector, the culture of giving commissions, and many times, bribes to police or custom authorities, sometimes on occasion being caught in the act, are the attitudes that we still carry on from the previous system.

There is a pressing need for all of us to commit ourselves to changing or helping to correct the mentalities; to move away from a mentality of easily achieving what we want or the desire to gain more to a mentality of transparency and accountability.

Ladies and gentlemen,

Another national policy should be on how to make use of the oil revenues. This is fundamental for the sustainability of the Nation in the future.

If I spoke of democracy and transparency, to which we are all committed in principle, it was because if we do not consolidate these two important aspects in our political life, we will lose control over the oil revenues and become much poorer than we are now.

There are many examples that we can take from other countries on the misuse of oil revenues and the lack of transparency in utilizing national wealth.

Sometimes we commit a folly in thinking that, because we know of other cases of corruption in other countries, this is already sufficient for us to feel immune against these social and political diseases. And when people from other countries help us by reminding us of this so that we can prevent it, we feel uncomfortable as though they were insulting us.

It is the typical reaction of boastful pride or better yet, lack of humility and frankness, as a result of not recognizing that as human beings, we may not be able to resist the temptations of ‘more easy, more convenient and more quickly’.

And it is in this context that it is urged for all to learn from the successes and failures of other countries. Unfortunately, to create a culture of transparency and accountability, whether in State or private institutions, will always take longer than to build platforms for oil and gas explorations and pipelines.

And it is extremely necessary that civil society is involved, from now on, in the debate on transparency and accountability in the development of the Timor Sea, not only because revenue is beginning to come in from Elang Kakatua and Bayu-Undan, but because greater revenue will come and we will need to know how to use and save for future generations.

The policy on saving these revenues will need to be clear. If we all understand ‘why’ we save, the first question should be ‘who will save’? How will it be saved and how will it be applied? And to whom will it be accountable? – will be the other questions that will necessarily require clear answers.

How will society be able to follow the process of revenue and the mechanism of management of funds? Transparency and accountability are not limited to information on what has been done or is being done, but also includes what is intended to be done next, what is intended to be done in each phase of development. More of that is demanded when dealing with the question of oil and gas, which without doubt is an issue of national interest.

Ladies and gentlemen,

To conclude, I ask all the participants, including the media, to assume that we are here to try to understand our fragility, in the dimension of the interests of the country and to undertake the overwhelming meaning of superior interests of the people.

We should leave aside political controversies, so as to be honest with ourselves and acquire the knowledge needed on the subject. Armed with this knowledge, we canthen better serve and defend the superior interests of the Nation.

I wish you all a good debate and engaging participation!

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