Aditjondro: Timor's Transformation To Global Capitalist Outpost (7/10)
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SELF-DETERMINATION UNDER GLOBALISATION:
Timor Loro Sa'e's transformation from Jakarta's colony
to a global capitalist outpost
December/1999
By George J. Aditjondro
(Department of Sociology and Anthropology,
University of Newcastle, Australia)
------------------
Under the banner of the Batara Indra Group, these business ventures in
Timor Loro Sa'e made the Sumampouw Brothers (Robby & Hendro) one of the
fourty richest Indonesian families, a fortune which they later re-invested
in a A$ 62 million gambling resort on Christmas Island. The casino was
popularly known as "Tommy Suharto's Laundromat", since the youngest son of
then President Suharto regularly laundered his ill-gotten wealth at this
casino. Tommy was also rumoured to be the true owner of the casino, which
was also frequented by General Wiranto, during Suharto's presidency.
It was on this Australian territory that Sumampouw and Hand set up four
joint ventures, Christmas Island & Resort pty. Ltd. (hotel and casino),
Christmas Island Toto Pty. Ltd. (gambling agent), Christmas Island Leisure
Pty. Ltd. (golf course and entertainment), and Christmas Island Medical
Pty. Ltd. (hospital). None of these companies, tough, went through, after
the casino was closed down in March 1998 due to mismanagement and the
decline of Asian high-rollers (Wibisono et al (eds), 1997: A-110 -
A-116;The West Australian , January 2, 1996, January 17, 1997; The
Australian , January 3 & 5, 1996, June 15, 1999; The Bulletin , January 9,
1996; Sydney Morning Herald , March 30, 1996).
Hence, Gerry Hand is probably looking for greener pastures to invest his
capital and others he represents. According to a source in Perth, the
former Labor Left politician has no spare cash of his own. So, somebody
must be bankrolling him. It is not impossible that these new Dili hotels to
be built by Gerry Hand & co. may be bankrolled by his old business partner,
Robby Sumampouw, and through Robby, by the Suharto family and the families
of the former commanders of the Seroja Operation, General Benny Murdani and
the late General Dading Kalbuadi.
If this is indeed the case, than it would indeed be a sinister move if Hand
got his hands in the tourism business in Timor Loro Sa'e. That would simply
be a repetition of the Indonesian era, when the Sumampouw Brothers's Batara
Indra Group dominated tourism through their Mahkota Hotel and New Resende
Inn. Which means that the Timorese people will then be double-crossed twice
by Hand. First, by joining Robby Sumampouw on Christmas Island, and second,
by channelling Robby's capital back into the country, which was ripped off
by Robby & Co. -- with the protection of Benny Murdani -- in the 1970s and
1980s.
It is therefore also investigate Gerry Hand's Timorese business partners:
Oscar Lima, Francisco Kalbuadi, and Ahmad Alkatiri. This "trio" are
completely different characters: Oscar Lima (born in East Timor on October
1, 1945) is a bonafide businessman, who risked his own businesses by
supporting the resistance's clandestine activities in Dili. This led him to
interrogations by the hated Indonesian army intelligence unit, SGI, and
caused him to lose contracts from the government. His company, PT Surik Mas
Loro Sae, survived by creating its own niche, independent from government
contracts, by building low-cost houses in the Fatumeta neighbourhood in
Dili (Suara Timor Timur , February 25, October 7 & 10, 1994).
In contrast to Oscar Lima, Francisco Kalbuadi (born in East Timor on
February 7, 1954) and Ahmad Alkatiri (born in East Timor on August 3, 1963)
are former Indonesian collaborators. Francisco ("Chico") Kalbuadi is a
Chinese-Timorese who was adopted by the late General Dading Kalbuadi, and
therefore took the family name, Kalbuadi. In 1991, as chair of the local
branch of the Jakarta-backed youth organisation, KNPI (Komite Nasional
Pemuda Indonesia ), Chico was asked by Suharto's eldest daughter, Siti
Hardiyanti Rukmana, aka Tutut, to represent one of her charities, the Tiara
Foundation, in Dili.
The Tiara foundation recruited young Timorese to work in Indonesian
factories owned by members and cronies of the Suharto family. This scheme,
which initially enjoyed the blessing of Bishop Belo and then Governor Mario
Carrascalao, eventually left around 800 young underpaid Timorese stranded
in Indonesia, with many young Timorese dying of unnatural causes in
Indonesia and also some of them forming a military-backed gang in Jakarta
(Aditjondro, 1994: 48-51; Hidup , May 12, 1991: 14; D & R , August 9,
1997).
After fleeing abroad for a short period to escape the Tiara victims, Chico
returned to his homeland. He was then recruited by another Timorese
collaborator, Domingos Soares (Kolli), to manage the provincial
government-protected gambling business company in Tacitolu, Dili. This
informal gambling place was a favourite hang out place for the notorious
pro-Jakarta militia leader, Eurico Guterres.
This job also did not last long. After pocketing hundreds of millions of
rupiah raised from this illicit gambling business, Chico was fired. Hence,
people in Dili shook their heads when Bishop Belo recruited him to manage
one of the diocese's charities, the Don Carlos foundation. Having become a
close confidant of the bishop, Chico travelled with the Nobel laureate to
Australia, several months before the UN-supervised referendum in Timor Loro
Sa'e. So, it seems that his political intuition told him to chance sides at
the right time.
Likewise, Ahmad Alkatiri, a younger brother of Mar'i Alkatiri, the FRETILIN
leader and member of the CNRT Transition Council, was the head of the East
Timorese branch of the pro-Jakarta organisation of 'respectable thugs,'
Pemuda Pancasila. On December 7, 1995, these thugs harassed Jakob Herin, a
journalist from Suara Timor Timur , in revenge for an embarassing news item
about their leader. This event became national news, after the
Jakarta-appointed governor, Jose Abilio Osorio-Soares and Bishop Belo
protested strongly against the harassment of the journalist (Jawa Pos ,
Bernas , and Media Indonesia , December 13, 1997; Sinar , December 24,
1997; Forum Keadilan , January 5, 1995).
The fact that these three completely different Timorese characters could
sit together on the board of East Timor Construction Company Pty Ltd shows
the shrewd negotiating skills of Gerry Hand, who had twice changed his
political stand towards East Timor. First, as a member of the Labor Left,
he was a staunch critic of the occupation. Then, he agreed to become a
lobbyist for the Indonesian businessman, Robby Sumampouw, who had been
the one to profit the most from the occupation. Finally, now that Timor
Loro Sa'e has become an independent country, with a lot of bucks to make
out of the reconstruction and developing of this country, Gerry Hand has
again appeared on the scene, with a bunch of Australian and Timorese
businessmen from all different sides of the conflict.
As in the case of Gerry Hand, one need to ask the question: what is the
source of Ahmad Alkatiri's capital? This question is extremely valid,
because Ahmad's former "boss", Japto Soerjosoemarno, who is still the
national chief of Pemuda Pancasila, has his business ventures not far away
from Timor. Japto is a 15% shareholder in the vast Tipperary ranch in the
NT, which a former Keating crony -- Warren Anderson -- had set up with a
former Suharto crony, Aburizal Bakrie (Australian Financial Review , March
30, 1999).
Some sources in Dili, however, told me that Mar'i Alkatiri's younger
brother, like many other Timorese who seemed to be Indonesian
collaborators, had actually always played a 'double agent' role. His
position as the head of the pro-Jakarta Pemuda Pancasila branch was only a
cover to protect many freedom fighters from the military's suspicion, while
also raising funds for the guerilla struggle in the mountain. In other
words, many so-called Pemuda Pancasila members who often hang around in
Ahmad Alkatiri's house in Dili, were actually members of the resistance's
clandestine front.
I do believe, however, that the Timorese people should still be critical
about their foreign investment partners, to avoid being doubly ripped off
by people who had made a fortune out of the sufferings of the Maubere
people in the past.
I also believe that individuals who had collaborated with the occupation
forces in the past, have to publicly denounce their past mistakes. Which,
in the case of Ahmad Alkatiri, means publicly admitting his mistake in
allowing his Pemuda Pancasila members to crack down on the only independent
media the country had at that time.
(d.5). Revived Aguamor:
One of the last legacies of the greed of the Suharto and Osorio-Soares
families was a chilled drinking water factory. That company, which was
called PT Aguamor Timorindo, was a joint venture between the Suharto family
and a charity headed by Gil Alves, a brother-in-law of then Governor Jose
Abilio Osorio-Soares.
According to my sources, this factory, which was also burned down during
the post-referendum violence, is going to be taken over and rebuild by an
Australian company. In the simmering heat of the country, especially on the
lowlands where the vegetation have been denuded during the 24 years
occupation, bottles of chilled drinking water are always in high demand. So
far, this demand has been filled by Hotel Dili and the Dili Lodge, with a
discriminative price policy of rupiahs for locals and Australian dollars
for expatriates.
It is still unclear, though, which company is going to take over and
rebuild the Aguamor factory and whom its Timorese partner will be.
(e). Construction:
(e.1). Multiplex & Joy Goncalves:
The potentially most lucrative business deal in Timor Loro Sa'e, is still
to be made by Australian construction giant, Multiplex Constructions Pty.
Ltd. The chairman and CEO of this company, John Charles Roberts, has family
ties with the 2/2 commandos that served in Timor Loro Sa'e in World War II.
Multiplex's Darwin-based manager, John Brears, recently visited Aileu,
which at that time was still the headquarters of CNRT and FALINTIL, and has
tendered to rebuild some public buildings there, while donating some
computers and vehicles to the CNRT.
"We are primarily interested in the short term in helping the Timorese
people get themselves established," John Brears told Catherine Munro from
Sydney Morning Herald on November 16, 1999. But Multiplex also wanted a
long-term relationship, he added. "We are not being carpet baggers, we are
not here to make a quick buck."
What do the UNTAET officials think about this proposal? According to the
same news article, Sergio de Mello's legal adviser, Hansjoerg Strohmeyer,
was already in Dili designing the planned property and land commission in
consultation with East Timorese independence leader, Xanana Gusmao.
Having spent most of his adult life fighting in the mountains, in
underground bunkers, and in jail cells in Dili, Semarang, and Jakarta, it
is still debatable whether Xanana knows what kind of corporate giant he is
dealing with. Or, whether Multiplex is the right partner to reconstruct
Timor Loro Sa'e's public buildings for the lowest cost.
As far as the company's history shows, Multiplex is certainly not
interested in small scale developments. It also has a history of
financially underwriting local political elites. Founded in Perth in 1962,
it still is a family business under the leadership of its founder and
present chief executive, John Charles Roberts. Since 1983 it has been
involved in overseas construction activities, with significant operations
in Singapore, Malaysia, and Indonesia. In 1997, it employed more than 3,000
direct and indirect workers on its sites and undertook work with a value of
over A$ 2 billion. In Sydney, it completed Australia's most prestigious
office building, the Chifley Square, and is currently constructing Stadium
Australia, the main stadium for the Sydney 2000 Olympic Games, with a
contract value in excess of A$ 450 million.
Closer to Timor, in Darwin, Multiplex Constructions has built the CLP
Government's State Square which houses the NT's luxurious Parliament House
as well as the Territory's Supreme Court, which was finished in 1993. By
1994, the cost of the building still varied between A$ 120 million and A$
160 million, way up from the original estimates in 1988 of A$ 98.9 million.
A fantastic waste of taxpayers money, since the Parliament House is
basically only used for 33 days annually by the NT's 25 MPs, who are
predominantly representing the ruling party. The entire project, however,
helped to increase the personal bank accounts of Warren Anderson, a crony
of then Labor Party's Treasurer, Paul Keating. Anderson "earned" $ 1.75
million for coming up with the idea and developing it and another A$ 3.5
million for managing the project. As construction manager, Multiplex itself
received A$ 2.8 million.
In its home state, Western Australia (WA), Multiplex Constructions has a
similar illustrious history. Again, in cooperation with Warren Anderson,
who also hails from WA, this Robert family company was also involved in
various building projects in Perth's central business district. These
include the three tower Westralia Square, the 51-storey Bank West (formerly
R & I Bond) Tower and the 53-storey Central Park Building. Most of these
multi-million projects became milking cows of the West Australian Labor
Party premier Brian Burke in the mid 1980s, which became known as the "WA
Inc."
Beginning in 1983, John Roberts gave almost $ 500,000 to either Brian
Burke's Leader's Fighting Fund, Leader's Account or the West Australian
branch of the Australian Labor Party (ALP). He gave much lesser amounts to
both the opposition Liberal and National parties. Together with other top
West Australian entrepreneurs and businessmen, Roberts "donated" more than
A$ 6 million to the ALP during the 1980s, most of it through the Curtin
Foundation (O'Brien and Webb, 1991: 80, 111, 195, 247; Peachment, 1995: 85;
Hawley, 1996: 30; Jay, 1997: 70; NT News , November 1, 1988, June 16, 1991;
Business Review Weekly , November 21, 1994: 84).
According to sources in Darwin and Dili, Multiplex had received a
sympathetic ear among the CNRT leaders thanks to Joao ("Joy") Goncalves and
a Darwin-based lawyer, Martin Hardie. Joy is a Timorese who fled to
Melbourne in the mid-1970s, and later on moved to Cairns, Queensland, where
his family owns a supermarket. Goncalves, who played a very low profile
role during his 24-years in Australia, as far as Timorese politics is
concerned, seems to be currently well-entrenched in the CNRT inner circle.
He is often seen managing the CNRT office in Dili, or travelling with
Xanana Gusmao, so many Indonesian-educated Timorese jokingly call him
"Mensekneg CNRT", referring to the Indonesian acronym of "State
Secretariate Minister." By cooperating with Multiplex Corporations, Joy
allegedly plans to open a new supermarket and a hotel in Dili. As far as
Martin Hardie is concerned, I will deal with this character later in the
section on legal services.
Due to Goncalves' mediation, Multiplex has recently obtained a contract of
A$ 0.5 million to rebuild the Dili headquarters of the old Portuguese era
chamber of commerc, called ACAIT (Associacao Commercial Agricola e
Industrial de Timor ). During the Indonesian occupation ACAIT had been
changed into KADINDA (Kamar Dagang dan Industri Daerah ) Timor Timur,
which was headed by Manuel Carrascalao. ACAIT has recently been revived by
an Ad hoc Committee, again headed by Manuel Carrascalao with Joy Goncalves
as the secretary. Without consulting other former members and without
holding a public tender, this Adhoc Committee has appointed Multiplex to
reconstruct the old ACAIT building. In the meantime, Joy is already
planning to open a restaurant in the reconstructed building.
Apart from the absence of a public tender, the A$ 0.5 million proposal to
rebuild the ACAIT building also contain some labour irregularities. The
proposal is based on an A$ 25 minimum wage for construction workers, while
in reality Timorese workers are mostly only paid A$ 5. A Timorese I
interviewed over the phone about this deal asked: "Where does the balance
go -- to Multiplex, or to the new ACAIT Adhoc Committee?" While another
Timorese added: "If just the reconstruction of that relatively small
building already costs a half a million dollars, what about the total costs
of reconstructing all the public buildings by Multiplex?"
So, slowly but surely, Multiplex is beginning to receive other contracts as
well. Recently, it obtained a A$ 2 million contract to rebuild the former
Indonesian provincial parliament building, which during the Portuguese time
houses most of the government offices.
(e.2). NT Power and Water Authority (PAWA):
According to sources in Darwin, this NT government-owned company has
obtained a contract to rebuild the electric power and potable water system
in the country. It is unclear how they obtained the contract and whether or
not they have a Timorese partner.
(e.3). NT Construction Group Pty. Ltd.:
This is another group which, according to my sources, has obtained
contracts to rebuild many public buildings in Timor Loro Sa'e. It is a
joint venture, formed to export the construction expertise available in the
NT. Shares in the company are held by builders, contractors, consulting
architects, consulting engineers, consulting surveyors, a firm of
barristers and solicitors, and relevant departmens of the NT Government
(AIBC 1995: 102). As in the previous case, it is unclear how they obtained
the contract and whether or not they have a Timorese partner.
(e.4). East Timor Logistics Pty. Ltd.:
This Perth-based company works closely with the UNHCR office in Dili in the
repatriation of Timorese refugees from West Timor. It was registered in
Perth on October 20, 1999, but was originally called Transcene Pty. Ltd.
Its directors are Anthony Andrew Miller, Robert James Forward and John
Charles Morrow, who all live in Perth, West Australia. The company's
Darwin-based manager is a professional diver, who was involved in diving
for oil companies during the installation and maintenance of offshore oil
rigs. His knowledge of the authorities and personnel at Port Darwin is
probably the reason for this company to hire him, since his main job is to
secure timely shipment of construction material to Dili.
The shareholders of this company, according to the ASIC (Australian
Securities & Investment Commission) company profile, are a West Australian
woman, Sue-Anne Marie Roberts, and two WA-based companies, Baysgold Pty.
Ltd. and Nautilus Bay Pty. Ltd. These two companies are owned by trusts of
the Hall and Dusty Miller families.
The awarding of contracts to this WA-based company, owned by two small
mining companies probably indicate the attractiveness of the Timor Loro
Sa'e business. It is still unclear whether this company has Timorese agents
working for it in the country.
(f). Legal Services:
(f.1). Martin Hardie & his CNRT contacts:
As I mentioned before in the section on Multiplex, one of the persons which
lobbied the CNRT to accept Multiplex's offer is a Darwin-based lawyer by
the name of Martin Hardie. Hardie is not so much a well-known lawyer in
Darwin, but was fortunate to have the right contacts to approach the CNRT
leadership. Those contacts were a Jose Gusmao, a relative of Xanan Gusmao
and formerly the CNRM Representative in Darwin, and Angie Pires, a Timorese
woman whose sister was Gusmao's former wife.
During my visit to Dili in mid-November 1999, I was told that Martin Hardie
was the one I had to see in Dili, to make an appointment with Xanana
Gusmao. Then, Hardie returned to Darwin for a while, but is currently
active again as part as Xanana's local staff in the nice CNRT office
building, near Hotel Turismo.
According to my sources, Hardie promoted Multiplex to Xanana, after the
giant construction company had donated three 4-wheel drive cars, computers,
and nice furniture for the new CNRT office in Dili.
(f.2). Tilman & Dunhill law firm:
Since the transition towards full independence and the destruction of so
many public and private properties have created immense legal problems,
obviously Timor Loro Sa'e has become a lucrative market for law firms. One
Australian law firm which has moved into the country is Dunhill, Madden &
Butler. This law firm is politically well-connected in Australia, since
Stephen Loosley, a former NSW State Secretary of the Australian Labor Party
(ALP), has joined it after leaving the NSW state parliament.
With a recommendation from Xanana Gusmao, they found their Timorese
partner, Manuel Tilman, to form their joint venture in Dili, called Tilman
& Dunhill. This Portuguese-educated lawyer, who was previously based in
Macao, has a dubious past. In the early 1990s, he had been involved in the
so-called "reconciliation process" among pro-independence and pro-Jakarta
Timorese initiated by Suharto's eldest daughter, Tutut. In December 1993,
Tilman attended the infamous London Meeting as part of the so-called "grupo
de seis", which included the highly respected Timorese community leader,
Padre Francisco Fernandez (Gunn, 1997: 45-48).
Three years later, Tilman joined a consortium with three other Timorese
collaborators, Abilio de Araujo, the Lissabon-based former top executive of
FRETILIN, Francisco Lopes da Cruz, a former UDT leader who had become
Suharto's "roving ambassador for East Timor", and Jose Abilio
Osorio-Soares, then Jakarta-appointed governor of Timor Loro Sa'e and
co-founder of the pro-Indonesian party, APODETI.
This consortium was going to undertake the construction of a 27 MegaWatt
(MW) hydropower plant on the Ira Lalaro lake, near Los Palos. The project
was discussed in April 1996 in Amsterdam during a meeting called and
chaired by then Indonesian ambassador for the U.K., J.E. ("Fanny") Habibie,
a younger brother of then Indonesian Research & Technology Minister, B.J.
Habibie. In addition to Fanny Habibie, the meeting was also attended by
Manuel Macedo, a top Portuguese businessman who had formed the
Portugal-Indonesia Friendship Association (PIFA), another partner in
Tutut's "reconciliation" campaign, and Paulus Tannos, chairman of PT Summa
Dinamika Energy which was chosen by the Indonesian Electricity Company
(PLN) to build the hydropower plant and which also was going to join the
consortium (Publico , January 6, 1996).
During Suharto's last years in power, Tilman gradually moved from Tutut to
Jose Ramos-Horta and Xanana Gusmao. On April 23 - 27, 1998, Tilman and his
Macao Group were even trusted by Xanana to organize the National Congress
of the Timorese in the Diaspora in Peniche, Portugal, which was attended by
218 delegates from various political parties, civic associuations, cultural
and sport associations. Two groups were absent from the convention, namely
the Timor Socialist Association, who ran their own resistance network in
Indonesia and inside Timor Loro Sa'e and Manuel Carrascalao's
Reconciliation Group for East Timor's Development (GRPTT). Joao
Carrascalao, the UDT leader, who was in Lisbon attending another
conference, initially refused to attend the convention but later changed
his mind.
For the sake of unity, the convention replaced the name Maubere in CNRM
with Timor, to accomodate UDT's rejection of the name 'Maubere' which they
considered to be derogative. So, CNRM became CNRT. The convention also
elected Xanana in absentia as the umbrella organisation's president and
Ramos-Horta and an unnamed person inside Timor Loro Sa'e as vice
presidents. Finally, the convention approved a Pact of Rights, Duties,
Liberties and Safeguards for the People of East Timor. This "Magna Carta"
was based on a draft from FRETILIN leader Mar'i Alkatiri, incorporated
parts of a draft from Luis Cardoso, former CNRM Representative for Portugal
and Spain, while rejecting a draft from RENETIL had been rejected earlier
on (ETRA, 1998; Taudevin, 1999: 141-142; Carlos da Silva Lopes, personal
communication, 1998).
(to be continued)