From: Marco Bass
Sent: Friday, 14 August 2009 5:18 PM
To: Mark Franklin
Cc: Kate Torney; Alan Sunderland
Subject: Media Watch Gusmao Response
Mark,
Please see my responses below.
1. On what basis did you make your initial claims that a rice contract had been awarded to a
company in which Zenilda Gusmao owned shares?
We received information from a highly trusted and respected source that the Prime Minister’s
daughter had been a financial beneficiary of a Government rice contract to a company in which she
was a shareholder. Moreover that East Timorese law explicitly prohibits the Prime Minister from
awarding contracts to companies in which family members have more than a ten per cent stake.
An ABC journalist then obtained from a confidential source a list of companies alleged to have been
awarded rice contracts. One of the companies listed was Prima Food. We then obtained an
electronic copy of the 2008 East Timor company register, which identified Ms Gusmao as a
shareholder of Prima Food. On that basis, we assembled a team of journalists to investigate the
issue.
2. Prior to running your initial story, what documents did you have to prove a) that the
contract had been awarded to Prima Food and b) that Zenilda Gusmao was a shareholder in
that company at that time?
We double-sourced two pieces of information:
A. The ABC obtained a copy of the 2008 East Timor company register directly from the
registry in Dili. It matched the electronic copy we already had, identifying Ms
Gusmao as a shareholder.
B. XXXX provided a government spreadsheet that confirmed that Prima Food received
the contract money. The spreadsheet matched one provided by our source.
We also obtained and had translated legislation confirming that the Prime Minister is required to
sign off on any government contract worth more than US$1 million. We confirmed that that was the
case in practice, during interviews with the President and the Finance Minister.
3. Without naming any confidential sources, can you tell us broadly how you obtained these
documents? Were these documents obtained from a member of the opposition Fretilin
Party?
We received the initial documents from a trusted source in Dili. The double sourcing of documents is
explained above.
4. Do you believe you presented sufficient evidence to accuse the Prime Minister Xanana
Gusmao of “a major conflict of interest”?
Yes.
Finance Minister Emelia Pires’s staffer, XXXX, told us that when Thea Dikeous interviewed the
Minister on June 22nd, she and the Minister told Dikeous that Zenilda Gusmao had sold her stake
prior to the contract being awarded.
XXXX did interrupt the interview to say that Zenilda had nothing to do with the company. That
evening she called one of the journalists on the investigation team and asked not to be included in
the story. During this call (June 22, at 9pm) XXXX said she had regretted interrupting the interview to
assert that Zenilda Gusmao wasn’t involved with Prima Food. XXXX said that, after the interview, she
had checked the business record only to discover that Zenilda Gusmao was indeed listed as having
an interest in the company. XXXX apologised for being wrong.
5. Did you make inquiries to determine whether this was indeed the case? If not why not? If so,
what were your findings?
After XXXX comments, we approached the Prime Minister (through XXXX, his other spokesmen and
independently) as well as Zenilda Gusmao and others associated with the government. We were
alive to the possibility that the Prime Minister might subsequently claim that his daughter had sold
her shareholding before the contract date. Because of that we specifically asked for documents that
might demonstrate that she had done so. None were ever forthcoming either from the individuals
concerned nor any Government authorities. We were made aware that, while the PM knew of both
of our investigations and the nature of the documents we had obtained, he was not available for
comment. The team followed all ABC Editorial Policies and News Division guidelines.
6. Did you ever apply to the Public Business Register of East Timor for information about
Zenilda Gusmao’s shareholdings in Prima Food? If not why not?
Yes, on several occasions.
7. You reported on July 1st that a group of business leaders told you they had documents
proving Zenilda had sold her shareholding but that their press conference "ended abruptly".
Did you ever seek these documents after the press conference? If so what was the result?
Yes we sought them numerous times but they were never provided. Requests for interviews on the
alleged sale were also denied.
The documents showing that Zenilda Gusmao had sold her shareholding at the time the rice contract
was awarded were published in Tempo Semanal on August 3rd.
8. Have you run any stories explaining that there are documents showing Zenilda Gusmao had
sold her shares before the contract was awarded? If so, when and where did they run? If
not, why not?
The document published by Tempo Semanal is, according to its publisher Jose Belo, of suspect
provenance. Neither the Prime Minister nor the Government has said that this is an official
Government document and proffered it as evidence of the Prime Ministers innocence in this matter.
One of the original reporting team is currently investigating the veracity of this document, which
appeared six weeks after our first request for evidence that Zenilda Gusmao was not a Prima Food
shareholder at the time the contract was awarded.
9. Do you still stand by your original story? If so, why?
Yes we do stand by this story. Our source is trusted and respected. The available documentation
confirmed the original allegation. Exhaustive attempts to obtain a response on precisely the point
alleged to be addressed by the Tempo Semanal document were made for more than a week before
broadcast. No information was ever forthcoming. To the contrary XXXX made the comments
referred to above.
We have further documents that suggest other Gusmao family members and family members of
other Cabinet Ministers are beneficiaries of Government contracts and we are currently
investigating them.
The allegations raised in our story have been taken seriously enough by the East Timorese
Ombudsman for him to begin an inquiry. He is investigating the way in which all 17 rice contracts
were awarded, following a request from the President.
10. Three days ago, Prime Minister Xanana Gusmao made strong statements alleging that there
is anti government bias in the Australian media, and made particular reference to the Prima
Food stories. Do you have any response to this statement?
In a Press Conference given by the Prime Minister on 14th of July he seemed uncertain as to his role
in this affair and indicated that he would leave it up to an independent inquiry to determine whether
there was any wrong doing on his part.
This week his tone was rather different but he offered no specific rebuttal to the serious allegations
raised in our stories.
Regards
Marco Bass
Acting Head, Asia Pacific News Centre
Australia Network
www.australianetwork.com