Help La'o Hamutuk analyze draft Environmental Law

In late January, Timor-Leste's Secretary of State for Environment circulated a Portuguese-language draft of a basic Environmental Law (also PDF) for limited public consultation, with the letter at right. The Secretary accepted La'o Hamutuk's request to extend the comment period until the end of February.

La'o Hamutuk did a preliminary computer-assisted translation of the draft law into English (also PDF), and we are asking people and organizations to make your own submissions or to email us with ideas, suggested changes or other analysis which will help us write ours.

Update, 2 March 2011:

On 28 February, La'o Hamutuk submitted 50 pages of analysis and recommendations on this law to the State Secretariat for Environment, in three parts:

• Narrative portion, discussing overall concepts and general ideas
• Article-by-article commentary, with revised English translation of the draft law
• Annex from Chris Serjak, with 44 detailed suggestions 

Click for a summary of the submission or a longer (but still abridged) version.

President sends 2011 budget to court, as LH suggested

Last Friday, La'o Hamutuk wrote a letter to President Jose Ramos-Horta (Tetum original) urging him not to promulgate the $1.3 billion 2011 State Budget that Parliament passed at the end of January.

On 7 February, the President asked the Court of Appeals to review the legality and constitutionality of this law, which is a 98% increase over the original 2010 State Budget. We have translated and posted the President's request and the Court's letter to Parliament on our website, which also links to Portuguese originals and other relevant documents. The Court must decide by 17 February; we hope it will wisely advise the President to return the Budget Law to Government and Parliament for redrafting.

The main points in La'o Hamutuk's letter are:

• Unsustainable spending threatens the goals of the Petroleum Fund Law.

Timor-Leste will spend $1,306 million dollars under this budget, including $1,055 million transferred from the Petroleum Fund during 2011 and $141 million carried over from unspent appropriations in the 2010 Budget, which also comes from the Petroleum Fund. This increase is not justifiable, especially since recent exploratory oil wells were dry. 

• The Infrastructure Fund is a bad precedent.

Nearly half of this year’s budget is for the Infrastructure Fund and the Human
Capital Development Fund. The Government says it is establishing these Special Funds
according to the 2009 Budget and Financial Management Law, but this interpretation of that law undercuts the Constitutional powers of Parliament "To deliberate on the State Plan and Budget and the execution report thereof" and "To monitor the execution of the State budget.” We also believe it is too soon to allocate funding to execute the National Strategic Development Plan (PEDN), which Parliament  has never seen. 

• The Heavy Oil Electricity Project could be a black hole.

This Budget allocates $448 million for heavy oil power plants and transmission lines, but the Government has not provided enough information. For years, the project has been plagued by misguided concepts, lack of planning, irregular procurement, unreliable contractors, unmet promises, environmental negligence and pervasive secrecy. Timor-Leste has already spent more than $100 million on this project, and before spending a half-billion dollars more, we encourage the President to examine it carefully.

• The oil price predictions are not prudent.

In the 2011 State Budget, the Government assumed future oil prices 50% higher than they assumed last year. This  violates the  Petroleum Fund Law that “All assumptions made shall be prudent, reflect international best practice and be based upon internationally recognized standards.” Policies based on wishes rather than prudence could squander the nonrenewable resource birthright of our children.

• Please exorcise the “Resource Curse.”

The level of spending in the 2011 budget brings Timor-Leste into the “resource curse” and threatens our future financial stability. The State institutions funded by this budget should ensure that the people’s resources are used for the people’s benefit – not for narrow election objectives.
     Therefore, we believe that you, as “the Head of State and the symbol and guarantor of national independence and unity of the State and of the smooth functioning of democratic institutions,” as described in our Constitution, should use your powers to rescue our State from economic instability and future poverty, as financial insecurity also threatens our national independence and unity.

The President asked the Court for advice on three questions:

• Is creating the Special Funds via the Budget Law, rather than with a separate specific law, permissible under Constitution Article 145.2?
• Does creating the Special Funds without specifying detailed expenditures to be paid from these funds violate the transparency requirement specified in Constitution Article 145.2?
• Does transferring $321 million more than the Estimated Sustainable Income without a detailed explanation of why this is in the long-term interests of Timor-Leste violate Article 9 of the Petroleum Fund Law, which has superior force?

The Court ruled five days later.

On the evening of 11 February, the Court of Appeals issued a 55-page opinion (also Portuguese). After soliciting and summarizing the views of President Jose Ramos-Horta, National Parliament President Fernando LaSama Araujo and Prosecutor-General Ana Pessoa Pinto, the three judges Claudio de Jesus Ximenes, José Luís da Goia and José Manuel Barata Penha cited extensive scholarly research and previous cases, concluding

"For these reasons, the judges of the Court of Appeal have deliberated that the Decree of the National Parliament No 45/II approving the 2011 State budget submitted to the President of the Republic does not violate Articles 145.2 and 115 of the Constitution, nor Article 9 of Law 9/2005 of 3 August (on the Petroleum Fund)."

The President promulgated the budget the following day, before leaving for a week in Israel and Palestine.  La'o Hamutuk believes that even if the budget is legal and constitutional, that doesn't make it good policy.

Presiza atu Respeita Prinsipiu Konstitusional ba Knar Prezidente Republika

Husi: Juvinal Dias, Staf NGO La’o Hamutuk. Publika ona iha Timor Post no Diario Nasional, 11 Fevereiru 2011

Iha 15 Novembru 2010, Governu aprezenta proposta Orsamentu Jeral Estadu 2011 nian ba Parlamentu Nasional, hafoin Governu adia kalendariu nian ba fulan ida. Proposta ne’e hakarak atu gasta tokon $985, ho tokon $734 husi Fundu Petroleu.

Ba orsamentu ida ne’e, Governu halo kalkulasaun Rendimentu Sustentavel Estimadu RSE/ESI 3% husi rekursu naturais inklui Fundu Petroleu iha tokon $734, ne’ebe signifika katak, tuir proposta OJE 2011, Governu iha intensaun atu tuir nivel Rendimentu Sustentavel Estimadu.

Maibe, iha loron 28 Janeiru 2011, Parlamentu Nasional aprova tiha ona orsamentu Jeral Estadu 2011 ho montante biliaun $1,306. Husi montante ne’e, Governu sei foti osan biliaun $1,055 husi Fundu Petroleu, no tokon $141 husi osan restu ne’ebe la konsege gasta iha tinan orsamental 2010, no tokon $110 husi Reseitas Domestiku.

Alterasaun orsamentu ne’e akontese bainhira Parlamentu Nasional hakarak atu aumenta tan osan tokon $321 husi Fundo Petroleu. Husi montante ne’e, tokon $282 ba sentral eletrika oleu pezadu. Dadaun ne’e, OJE 2011 ne’e hein hela Prezidente Republika nia promulgasaun.

Tamba sa Prezidente Republika husu Tribunal Rekursu nia hanoin?

Respect the Constitutional Principles of the President’s Duties

During this past week, Timorese journalists and politicians have issued many uninformed pronouncements on President Jose Ramos-Horta asking the Court of Appeals for advice before he promulgates the 2011 State Budget. Dili is rife with allegations that this is a political action or personal challenge, will create a crisis, and/or blocks the Government from functioning.

We believe that it is essential for the rule of law to apply in Timor-Leste, so Juvinal Dias of La'o Hamutuk wrote an article (Tetum original, English translation) which was published today in Timor Post and Diario Nacional. The following is a shortened version of the translation:

Prezidente haruka Orsamentu 2011 ba Tribunal, hanesan LH suzere

Iha loron 4 Fevereiru, La’o  Hamutuk hakerek karta ida ba Prezidente Jose Ramos-Horta  (mos tradusaun ba Ingles) husu nia atu la bele promulga Orsamentu Estadu biliaun $1.3  ne’ebe pasa ona iha Parlamentu iha fulan Janeiru nia rohan.

Loron tolu tuir mai, Prezidente husu ba Tribunal Rekursu atu hare lei orsamentu ida ne’e nia legalidade no konstitusionalidade, ne’ebe nia kresimentu sae 98% liu  Orsamentu Jeral Estadu original 2010 nian. Ami publika ona Prezidente nian karta no karta husi Tribunal Rekursu ba Parlamentu iha ami nia website, ne’ebe mos traduz dokumentus ba lingua Ingles no inklui dokumentus relevante sira seluk. Tribunal Rekursu tenke deside molok loron 17 Fevereiru; ami espera katak sei iha konsellu ida ne’ebe matenek ba Prezidente atu fo fila Lei Orsamentu ne’e ba Governu no Parlamentu atu halo revisaun. 

Pontus importante iha karta La’o Hamutuk nian maka:

• Gastus la sustentavel no ameasa objektivu Lei Fundu Petroleu.

Tuir Orsamentu 2011 ne’e, Timor-Leste sei gasta tokon $1,306 inklui tokon $1,055 ne’ebe transfere husi Fundu Petroleu durante tinan 2011 no tokon $141 mai husi osan restu ne’ebe la konsege gasta iha Orsamentu 2010, ne’ebe mai mos husi Fundu Petroleu. Kresimentu ida ne’e la justifikadu, espesialmente desde posu rua esplorasaun mina-rai nian  foin dadauk ne’e maran.

• Fundu Infraestrutura nudar presedente at.

Besik 50% Orsamentu Jeral Estadu 2011 ne’ebe aprova ona husi Parlamentu aloka ba iha Fundu Infraestrutura no Fundu Dezenvolvimentu Kapital Umanu. Governu hateten katak sira estabelese Fundu Espesial hirak ne’e bazeia ba Lei Orsamentu no Jestaun Finanseiru ne’ebe Parlamentu aprova ona iha tinan 2009, maibe interpretasaun ba lei ne’e kua tiha ona poder Konstitusional Parlamentu nian “Delibera kona-ba Planu no Orsamentu Estadu nian no mós relatóriu kona-ba orsamentu ne’e;” no “Fiskaliza oinsá Estadu hala’o orsamentu nasionál.” no mos ami hare katak orsamentu ida ne’e ne’ebe lalais liu aloka hodi finansia atu ezekuta Planu Estratejiku Dezenvolvimentu Nasional (PEDN), ne’ebe Parlamentu seidauk hare.

• Projeitu Eletrisidade Oleu Pezadu bele fakar osan.

Orsamentu ne’e aloka tokon $448 ba projeitu eletrisidade oleu pezadu no linha transmisaun nian, maibe ami hare katak informasaun sira ne’ebe Governu fo ne’e barak mak seidauk kompletu. Tinan barak nia laran, projeitu ne’e hetan problema boot husi konseitu ne’ebe la klaru, laiha planu, iha iregularidade iha aprovisionamentu, kontraktor ne’ebe labele fiar, la hatan promesa, estragus ambiental, iha segredu. Timor-Leste gasta tiha ona osan liu tokon $100 ba projeitu ne’e, no molok gasta liu metade biliaun ida, ami enkoraza Prezidente atu examina alokasaun ida ne’e ho kuidadu.

• Prediksaun presu minarai la prudente.

Iha Orsamentu Jeral Estadu 2011, Governu halo asumsaun ba presu mina-rai nian iha futuru sei sai maizumenus as liu 50% ba presu ne’ebe uluk Governu halo iha tinan 2010. Ida ne’e viola tiha Lei Fundu Petroleu katak “asumsaun hotu ne’ebe halo tenke prudente, refleta pratika diak internasional nian no tenke bazeia ba standar konhesimentu internasional”. Politika bazeia ba hakarak duke ba prudensia bele halakon benefisiu husi rekursu naun renovavel Timor-Leste nian ba ita nia oan sira.

• Favor duni demoniu “Malisan Rekursu”.

Nivel gastus husi Orsamentu ida ne’e lori ona Timor-Leste atu hakbesik an ba malisan rekursu no mos ameasa ba estabilidade finanseiru Timor-Leste nian iha futuru. Instituisaun Estadu hetan apoiu husi Orsamentu ida ne’e tenke garante katak Orsamentu nian tenke ba povo laos deit nudar instrumentu politiku ba objetivu eleitoral.
    Tamba ne’e ami hanoin katak ita boot nudar “Xefe-Estadu, símbulu no garantia independénsia nasionál no unidade Estadu nian, no instituisaun demokrátika sira-nia funsionamentu regular” hanesan hateten iha ita nia Konstituisaun, atu bele uza ita boot nia kompetensia ida ne’e hodi salva estadu ida ne’e husi instabilidade ekonomia no pobreza iha futuru, basa ameasa ekonomia ne’ebe la stabil sei fo ameasa mos ba independensia nasional no unidade estadu nian.

Prezidente Republika husu ba Tribunal Rekursu atu hetan apresiasaun ho pergunta tolu:

• Bainhira atu kria Fundu Espesial tuir Lei Orsamentu ne’e mak diak liu tan ka kria ho lei spesifiku ketak ida, bele hetan permite husi Konstituisaun RDTL Artigu 145.2?
• Bainhira kria Fundu Espesial lahoo spesifikasaun ba gastus ho detailhadu ne’ebe sei selu ba Fundu ne’e, nia viola ezizensia transparansia ne’ebe hateten iha Konstituisaun RDTL Artigu 145.2?
• Bainhira atu transfere tokon $321 liu Rendimentu Sustentavel Estimadu laho esplikasuan ne’ebe deitalhadu  kona-ba oinsa ida ne’e ba Timor-Leste nia interese tempu naruk  ne’e viola Lei Fundu Petroleu Artigu 9 ne’ebe iha forsa superior ne’e ka lae?

Parliament increases 2011 budget by $320 million

During the budget debate, Parliament increased the 2011 expenditure  for the heavy oil power project by $282 million, and made other increases. On 28 January, they approved the budget after increasing the amount to be transferred from the Petroleum Fund to $1,055 million, which is $321 million above the Government's optimistic estimate of the sustainable income. This graph shows how the new budget compares with the proposed one, and with past expenditure levels.

Parlamentu Nasional aumenta gastu iha Orsamentu Estadu 2011 ba tokon $320, inklui tokon $282 ba projeitu oleu pezadu. Iha loron 28 Janeiro, sira aprova ona OJE, maibe hasai transferensia husi Fundu Petroliferu iha tinan 2011 to'o bilaun $1,055, $321 liu Rendimentu Sustentavel Estimatiza.  Bele hare mudansa iha grafiku tuir mai.

Aloka horseiik, gasta aban

Grafiku ne’e hatudu balansu iha Tezoriu (Konta Bankaria Governu nia ne’ebé la’o hela) iha fin husi kada trimestre, no mos montante ne’ebé transfere husi Fundu Petroleu ba Tezoriu kada trimestre. Balansu Tezoriu sa’e iha fin de kada tinan fiskal (Juñu 2007 no Dezembru 2008-2010), tanba Governu rai nafatin osan ne’ebé la uza husi Fundu Petroleu atu bele gasta fali iha tinan oin mai, hodi viola prinsipiu sira Lei Fundu Petroleu nian.

Iha tinan ikus 2010 nian, konta Tezoriu nian rai osan tokon $340, nivel ida ne’ebé too oras ne’e aas liu iha Timor-Leste nia istoria. Proposta orsamentu 2011 inklui tokon $141 husi ida ne’e, ne’ebé sai dalan ba governu atu gasta osan barak liu sein nesesidade atu hasa’e taxa no rendimentu sira. Ne'e metodu ida ne’ebé perigozu, halakon responsabilidade fiskal no orsamentu ne’ebé honestu.