East Timor opposition demands review of rice import contract

07/07/2008 21:05:39

East Timor's Oppositiion Fretilin Party has called on the Prime Minister Xanana Gusmao to explain why a lucrative contract has gone to a member of his party the C-N-R-T.

The contract for the importation of rice has been doubled to 16,000 tons to provide improved food security in the country.

The cost will increase from $US4 million to more than $14 million, reflecting the soaring international price of rice.

The new contract, signed by the Prime Minister has gone to the company of Germanu da Silva, a member of his political party, CNRT.

Fretilin MP, Jose Texeira, says a review is necessary as there was no tender process.

"This is a lot of money, $14.4 million is about a quarter of the budget Fretilin used to have in any one year to run the country," he said.

"We want and the people demand a greater amount of transparency for this, for these type of very large transactions."

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