East Timor to abolish MP pension benefits and SUV usage following public demonstrations

Student-Led Protests Against MP SUV Purchases Rock Timor-Leste

Student-led demonstrations have taken place in the capital city of Dili, Timor-Leste, this week, resulting in clashes with police for two consecutive days. The protests, which occurred while Prime Minister Xanana Gusmao was traveling, were sparked by a controversial budget item, approved last year, to purchase Toyota Prado SUVs for each of the country's 65 members of parliament.

The plan to purchase the SUVs has triggered widespread anger in a nation where more than 40 percent of the population lives in poverty, according to the World Bank. Universidade da Paz economic faculty dean Caetano C. Correia stated that many people felt that public officials, particularly legislators, are not living in the same condition as ordinary people. He also noted that the SUV purchase plan is being viewed as a symbol of injustice.

The controversy stems from a budget item, approved last year, to purchase SUVs for each member of the National Parliament. The organization responsible for the dispute over the purchase of 4.2 million dollars worth of SUVs is the National Parliament of Timor-Leste. Parliament has announced that it will take steps to annul the law following a meeting with representatives of the demonstrators.

Initially, the protesters demanded the cancellation of the SUV purchase plan. However, their demands later expanded to include the annulment of lifetime pensions for former MPs, as stated by Universidade da Paz economic faculty dean Caetano C. Correia. Under a 2006 law, former MPs are entitled to a pension equivalent to their salary.

The tender for the SUV purchase was due to be completed in September, according to an official parliament document. However, parliament unanimously adopted a resolution to cancel the new vehicle procurement process listed in the 2025 budget. The parliament's general secretariat must now adopt administrative and financial measures aimed at maintenance and efficient use of vehicles already in MPs' use.

Around 2,000 demonstrators gathered near the parliament building in Dili earlier in the day. Demonstrators on Monday and Tuesday hurled rocks at police, who responded with tear gas. President Jose Ramos-Horta stated there would be "no tolerance" for violence during the demonstrations.

In response to the protests, Prime Minister Xanana Gusmao, who was traveling to London for meetings on land and maritime borders, expressed his support for the demonstrators' demands. He is expected to return on September 22.

Timor-Leste continues to grapple with high inequality, malnutrition, and unemployment. Its economy remains heavily reliant on its oil reserves. Despite these challenges, the government's decision to cancel the SUV purchase plan is a step towards addressing the concerns of the people and promoting greater accountability and transparency in public spending. Some demonstrators expressed scepticism after parliament announced it had cancelled the plan to buy new cars for MPs, with rumors circulating that the cars were already on their way. However, the government's commitment to transparency and accountability is crucial in addressing these concerns and building trust with the people.

East Timor to abolish MP pension benefits and SUV usage following public demonstrations