Writer : Mada Devi Kartikasari I Editor : Muhammad Fahrezi Syahputra
Setting the Stage: Corruption in Timor Leste
Timor Leste, a newly established country that gained independence in 2002, faces major challenges in development and eradicating corruption. Like a chronic disease, corruption has penetrated into the very fabric of national and state life, hampering development, damaging public trust, and exacerbating inequality.
Corruption in Timor Leste has complex roots, linked to a long history of conflict and political transition. After recovering from the conflict, the country had to rebuild state institutions from scratch, including anti-corruption agencies. Timor Leste’s anti-corruption agencies, the Comissão Anti-Corrupção (CAC), were formed with the hope of becoming the vanguard in eradicating corruption. However, along the way, the CAC faced various obstacles that hampered its effectiveness.
One of the main obstacles is the issue of independence. Political intervention often becomes an obstacle for the CAC in carrying out its duties. Lack of resources, both human and financial, is also a serious problem. In addition, weak law enforcement and a deeply rooted culture of impunity further exacerbate the situation.
The Plague of Corruption in Timor Leste and CAC Independency
Based on Transparency International data, Timor Leste’s Corruption Perception Index (CPI) score in 2024 was 44 points and its ranking was 73rd out of 180 countries. The CPI scale starts from 0, which means “highly corrupt”, to 100, which means “very clean”. Although the ranking is third among ASEAN countries, when compared to previous years, Timor Leste’s CPI still fluctuates, reflecting the challenges faced in efforts to eradicate corruption.
From an extrinsic CAC perspective, factors that address this problem include a lack of transparency in state financial management, weak supervision, and a suboptimal accountability system. One of the major corruption cases in Timor Leste is related to the Petroleum Fund (PF). As an oil exporting country, the PF is a state-owned investment fund tasked with managing state revenues from oil and natural gas resources by investing them in international financial markets.
Since 2007, the PF has funded 87% of state expenditures, thus facilitating various government services and infrastructure development. However, due to poor systems such as low institutional capacity, poor accountability and transparency mechanisms, weak political will, and uneven law enforcement, the creation of PF funds has triggered large-scale corruption, rampant poverty, oppression, and economic stagnation. The decline of PF has been exacerbated by the impact of the Covid-19 pandemic which has affected economic conditions throughout the world.
In crisis conditions, the independence of the CAC is greatly needed as a shield for efforts to eradicate corruption in Timor Leste. The CAC was established based on Law on the Anti-Corruption Commission (Law Number 8 of 2009). Article 3 paragraphs (1) and (2) state that:
“1. The Commission is a legal entity regulated by public law, given a legal entity with technical independence and administrative and financial autonomy
2. The Commission is given the status of an independent and specialized criminal police agency and its interventions are regulated based on strict criteria of legality and objectivity, in accordance with legal provisions.”
Then, the provisions of Article 5 paragraph (1) also state: “The office operates as an independent legal entity and is not subject to the direction, control, or influence of any person or authority.”
Based on these provisions, it is expressly stipulated that the CAC as an institution is a technically independent legal subject and has autonomy in managing its finances and administration. The independence of the CAC is also reflected in the provision that during its operations the CAC must not be subject to the direction, control, or influence of any person or authority.
The Significance of Corruption and Jakarta Statement Principles
Corruption causes very broad and damaging impacts. Public trust in government and state institutions is eroded, which can ultimately threaten political stability. The effectiveness of public services and development infrastructure is hampered, so that the community does not get maximum benefits from the state budget. The direct impact on society is in the form of inequality and poverty that is getting worse, because corruption enriches a handful of people at the expense of the public interest. Corruption also hinders public access to basic services such as education and health. Foreign investment and economic growth are hampered, because investors are reluctant to invest in corrupt countries. Corruption also causes leaks in the state budget and includes natural resources, directly harming the people.
On November 26th and 27th 2012, the leaders and former leaders of the Corruption Eradication Commission (KPK) held a discussion entitled “Principles of the Corruption Eradication Agency” which resulted in a pact, namely the Jakarta Statement. The discussion featured anti-corruption agencies from various countries and representatives of the United Nations Development Program (UNDP) and the United Nations Office on Drugs and Crime (UNODC). The implementation of the 16 principles set out in the Jakarta Statement can help strengthen governance and prevent corruption. Some of the fundamental principles in the Jakarta Statement that are acceptable to the CAC in overcoming corruption in Timor Leste include:
- Collaboration: the CAC must operate in collaboration with other state institutions, civil society, the private sector, and other stakeholders including maintaining international coordination. Those entities include the National Police Force of Timor-Leste (PNTL), Falintil-Defence Force of Timor-Leste (F-FDTL), and the Office of the Human Rights and Justice Ombudsman of Timor-Leste;
- Appointment: the CAC Commissioners must be appointed through a process that ensures an apolitical attitude, impartiality, neutrality, integrity and competence. This is as regulated in Article 8 of Law Number 8 of 2009 concerning eligibility requirements for CAC Commissioner Candidates;
- Financial independence: the CAC must have full authority to regulate and control its finances without compromising the applicable accounting standards and audit requirements. Financial independence has been regulated in Article 3 paragraph (1) of Law Number 8 of 2009 which states that the CAC is a legal subject with autonomy in managing its finances;
- External accountability: the CAC must comply with laws and regulations and be responsible for the mechanisms that have been established within its organization to prevent abuse of authority. One of the efforts to prevent abuse of authority is as regulated in Article 9 Law Number 8 of 2009 concerning limitation to CAC Commissioner’s on exercising his or her functions on a full time basis.
Solutions on Tackling Timor Leste’s Vast Corruption
In this context, the CAC as Timor Leste’s anti-corruption agency needs to take concrete and sustainable steps. Those steps can be taken by:
- Strengthening the independence of the CAC by providing greater autonomy, ensuring adequate budget allocation, and protecting CAC members from political intervention;
- Increasing transparency and accountability through the implementation of an e-Government system, stronger public oversight, and wider access to public information;
- Strengthening law enforcement by increasing the capacity of law enforcement agencies, providing strict penalties for perpetrators of corruption, and protecting whistleblowers;
- Increasing community participation by involving civil society, raising awareness of the dangers of corruption, and instilling anti-corruption education from an early age;
- Strengthening the internal oversight system in all government institutions, implementing a strict code of ethics for public officials, and increasing transparency in the procurement process of goods and services. Cooperation with international organizations and other countries is also important to obtain technical and financial support in efforts to eradicate corruption.
Corruption is a common enemy that must be fought with determination and cooperation from all parties. The government, state institutions, civil society, and private sector must come together to create a strong anti-corruption culture. By strengthening the independence of anti-corruption institutions, increasing transparency and accountability, strengthening law enforcement and engaging public participation, Timor-Leste can build a cleaner, fairer, and more prosperous future. These efforts are in line with the Jakarta Statement spirit, which underlines the importance of good governance and public participation in development.
