Showing posts with label Worldbank. Show all posts
Showing posts with label Worldbank. Show all posts

Thursday, September 24, 2009

Doing Business in Timor. The full story.


The authorities Government and Worldbank etc are making much of Timor-Leste's new tax regime and ease of obtaining a construction permit (despite no land law...).

However, Timor-Leste is still at the bottom of the list for "enforcing contracts", as their is litttle rule of law in Timor, one might surmise. It will also cost the plaintiff 163% of the total amount claimed in order to get one's money when a contract is breached. So if you want 100 bucks back, you need to pay 163 bucks in order to get it - if you ever will. Make sense? Not really. And that is only after jumping 51 procedures over the course of 1,400 days of legal battles - that is about 3.5 years....

Read the full report here and make up your own mind.

Friday, September 11, 2009

Thursday, June 25, 2009

WB

Thursday, June 11, 2009

FW: Job - Treasury Advisor

Like the Titanic - the PFMCBP sails on....

between $250.000.00 and $500,000.00 for this position?

14 days notice for applying for this high profile and high responsibility position.

Qualified candidates - will they even learn it is available, and will they be interested?

From: east-timor-owner@lists.riseup.net [mailto:east-timor-owner@lists.riseup.net] On Behalf Of ETAN
Sent: Wednesday, June 10, 2009 11:15 PM
To: east-timor@lists.riseup.net
Subject: Job - Treasury Advisor


REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE

MINISTÉRIO DAS FINANÇAS

Application Procedure

Please visit our website at
www.mof.gov.tl/ to learn about our recruitment process and your application requirements including how to address the Selection Criteria in your application:

http://www.mof.gov.tl/en/administration/hr/vacancy_announcement/Recruitment_Process_and_Application_Guideline_PFMCBP.pdf

Applications need to be sent to our Programme Implementation Officer-PFMCBP at email address, pfmcbp@mof.gov.tl, no later than
17:00hours Timor-Leste time on 25th June 2009.

Only short-listed candidates will be contacted. Please note that applications received after the deadline will not be considered.



TERMS OF REFERENCE


Job Title: Treasury Adviser

Reporting to: National Director of Treasury
Director-General of State Finances
Senior Management Adviser, State Finances
PIO (for contractual and administrative purposes)

Counterpart staff: National Director of Treasury

Duration:
12 months, with possibility of extension up to 1 July 2011 based on the adviser’s performance and the Ministry’s needs

Location: Ministry of Finance, Dili – Timor Leste


I. Background

Planning and Finance Management Systems in Timor-Leste

Since the restoration of independence in 2002, the Government of Timor-Leste (GoTL) has made steady progress in building its Planning and Finance Management (PFM) systems, but significant challenges remain. Institutions responsible for planning, budgeting, budget execution, revenue collection, internal control and reporting are particularly weak in a context of rapidly accumulating revenues and expansion of the state budget. The PFM system is characterized by extremely low budget execution on a cash basis, caused by low capacity within the civil service and weaknesses in planning, budgeting, procurement, implementation and project management. Progress to convert existing resources into economic growth and tangible service delivery improvements is slow.

Strengthening PFM in any country is a long-term agenda. Sound PFM requires government wide systems and processes that operate in a fully integrated manner; weak links must be addressed in a systematic manner. Areas requiring immediate attention include:
- Linking planning and budgeting
- Reform of procurement and devolution to the line agencies
- Improving cash planning and cash management to prevent excessive Treasury liquidity
- Strengthening core IT systems to support the budget process
- Improving internal and external controls and monitoring
- Implementation of a comprehensive program of capacity building and professional development for civil servants including delivery of incentive and reward reforms.

The GoTL is conscious of the key role of PFM systems for growth, service delivery and poverty reduction, and has commenced implementation of a Planning and Finance Management Capacity Building Program (PFMCBP) to assist to secure these objectives.

The Planning and Financial Management Capacity Building Program

The PFMCBP aims to achieve sustainably strengthened planning, budgeting, public expenditure management and revenue administration for growth and poverty reduction, with emphasis on efficiency, effectiveness, accountability, integrity, service culture, and transparency.

Funded through a World Bank multi-donor trust fund, the PFMCBP is a five year coordinated program of targeted capacity building in planning and financial management. The key GoTL implementing agency is the Ministry of Finance (MoF), but PFMCBP also includes support for financial management staff in the line ministries and districts. The program comprises four major components, encompassing: (a) public expenditure management; (b) revenue administration and macro-economic management; (c) support for executive management and other cross cutting activities; and (d) support for program implementation.

Early capacity building initiatives in the MoF focused largely on getting the public financial management system up and running without fully addressing the capacity shortfalls of civil servants. This has created a system that remains heavily reliant on the presence of international advisers, who have largely focused on in-line performance and, to a limited extent, on the transfer of skills. Through PFMCBP the GoTL wants to move beyond the transitional substitution of international for local expertise, to an integrated approach to institution building that relies on three pillars: skills and knowledge; systems and processes; and attitudes and behaviours. Based on the three-pillar framework, the objectives for the PFM function are (i) improved service delivery, both to internal clients and to the population; and (ii) to create a sustainable PFM system that would be increasingly managed and run by national staff, with the number of advisers decreasing over time as national staff take on increasing responsibility. To achieve this, the Program has adopted a “platform” approach under which first steps and foundations are consolidated before more advanced steps are attempted.

PFMCBP faces two central challenges in the near term. The first challenge will be to creatively and flexibly support elaboration and implementation of the change management strategy by the RWG, task teams and senior management team. It will take time to define and communicate elements of the change process: it must not proceed too quickly, or according to a technical blueprint. The second challenge will be to ensure the program does not lose focus on the pressing need to improve the Ministry’s core public finance management responsibilities and maintain operations. Government capacity is already limited and there is a risk that dramatic changes may divert focus. PFMCBP should target activities that improve service delivery, support economy and employment outcomes, and underpin government’s efforts to establish its legitimacy.

Program Management

The program is managed and implemented by the MoF through a dedicated Program Implementation Unit (PIU), led by the Program Implementation Officer (PIO). Comprising a core group of TA management specialists, the PIU ensures best practice capacity building efforts throughout the program. The PIU is located within the Executive Office of the Ministry of Finance, and is designated part responsibility for aid effectiveness also, together with associated PIUs in MoF.

A Steering Committee chaired by the Minister of Finance and involving senior managers, key line agencies and district representatives as appropriate will provide the strategic direction for the program and ensuring that the program progresses in line with the Government’s development and public financial management objectives.

A Supervisory Committee Chaired by the Minister of Finance and comprising the World Bank and one or more development partners will monitor progress in program implementation and make recommendations to the Steering Committee on issues affecting the successful achievement of the program’s objectives. The Supervision Committee will provide a forum for continuous policy dialogue and will oversee and advice on the integration of all activities and advisers within the program framework, including coordination and consultation with donors involved in parallel financing and co-financing

All Technical Advisers recruited to the PFMCBP are contracted by, and accountable to, the Minister of Finance. Senior Management Advisors will be responsible for planning and monitoring the quality of performance of TA assigned to their respective branches and units.

Ministry of Finance

The Ministry of Finance is the Government body responsible for the design, execution, coordination and assessment of the finance policies defined and approved by the Council of Ministers, particularly in the areas of budget and finance, and the Government’s annual planning and monitoring of their programs.

In 2008, the Ministry of Finance embarked on a process for institutional reform that aimed to improve the quality of services that the Ministry provides to policy-makers, line ministries and districts. The new Organic Law was approved in January 2009 which paved the way for the establishment of four (4) General Directorates, namely, i) General Directorate of State Finances; ii) General Directorate of Revenue & Customs; iii) General Directorate of Policy Analysis & Research, and (iv) General Directorate of Administration and Finance. The Organic Law also approved the creation of 12 National Directorates positioned under each of the four (4) General Directorates.

A Senior Management Committee has also been established to transmit reform messages and lead in the performance improvements within the Ministry. The team is composed of the Minister, the Vice-Minister of Finance, the Chief of Staff of the Minister of Finance, the Senior Management Advisers (SMAs-International) of the four (4) General Directorates and the Director-Generals (Timorese) as they are appointed on the interim or recruited and appointed to the position, on permanent capacity.



III. Objectives of the Assignment

The Budget Execution Department within the National Directorate of Treasury is undergoing significant reform. This is because previously this was the hub of the centralised Treasury operations. This is in line with the Government decision to decentralise some of the Treasury functions and move the operations away from centralised control and towards a more risk management approach.

Following the successful re-structure of the Ministry and the appointment of a new Director for the National Directorate it is important that, as process and functions get devolved, the Treasury staff be assisted in this transition.

At the moment there are three technical advisers within the National Directorate, the lead adviser to the Director is supplied from the IMF. There are currently two advisers from the PFMCBP one working on the FMIS and Asset registers and the other on account reconciliation. Both inputs have been highly successful in meeting the needs of the Treasury at the time.
Future inputs have been designed to be more in line with the upcoming needs of Treasury and will be focussed more on managing and embedding the internal process of change and focussing a little more on internal audit.

The input on reconciliation is due to end in Q2 2009. Whilst the accounts have now been reconciled and brought up to date there remain problems with the computer software that will not have been resolved at the end of the assignment. This combined with the revised decentralised responsibilities will require some process changes and training of core staff specifically within the Budget Execution Division.

The other significant objective of this assignment will be to effect the internal process change away from centralised management of cash purchase vouchers and purchase orders and to move to decentralised systems affected by the line Ministries and monitored by the execution department.

The Government has agreed to this change but it has not been implemented due to systems and legal constraints that have now been overcome. As the new processes are introduced and local counterpart staff trained these processes will also form a key component of the revised Treasury manual that is being compiled by the IMF adviser.



IV. Duties and responsibilities
The Adviser will provide both operational support and capacity building to Treasury staff as follows:

A. Core Tasks


· Assist in the production of a consolidated Treasury manual
· This work is being coorindated by the incumbent IMF adviser and so this input will focus particularly on the integration of freebalance procedures and screens, especially in regard to budget execution and risk management reports into the manual
· Assistance to the Budget Execution Department
· In particular to map out and review internal processes with a view of execution and introducing new risk management based processes and procedures.
· Strengthen the process of regular bank reconciliation between Treasury and the BPA and between Treasury and the commercial banks, in particular work with the Freebalance software team to make sure that internal processes and the software are consistent.
· Strengthen the process of revenue reconciliation between BPA and Treasury and Tax and Customs Directorates and the Treasury.
· Strengthen the process of accounting for retirement of advances to line ministries, districts and embassies and advise on the process of decentralisation of Treasury functions to Districts
· Work closely with the FMIS Training consultant to ensure a co-ordinated approach and provide input to training manuals
· Support to the increased use of the upgraded FMIS within Treasury with a particular focus on;
· Tracking expenditures related to projects and programs of Government
· Entrenching the use of PB reports within Treasury


B. Capacity Building functions


· The Adviser will be expected to incorporate the three pillar approach to capacity building in all aspects of his/her work with Timorese counterparts. The Adviser shall model transparency and accountability in his/her own behavior, and by focusing on development of skills and systems, together with support to behavioral and attitudinal change, the adviser shall help to build capacity:
· Jointly with the Program Implementation Officer and the HR & CB Adviser, develop an agreed capacity building workplan (based on the Adviser’s own workplan), to incorporate operational activities and capacity building into the core specific activities to be undertaken. Regularly review and revise the workplan;
· Agree on specific tasks within activities for which national counterparts will be responsible; agree on methodology and monitorable indicators for assessing progress on agreed tasks, and for providing feedback to staff;
· Increase, incrementally, the level and number of tasks for which national incumbents are responsible, commensurate with progress/improvements in technical and functional capabilities.

C. Deliverables

Within the first three (3) weeks of the assignment, the Treasury Adviser shall prepare a Workplan based on the objectives of the assignment and specific functions for approval by the the Treasury Director; copy furnished to the PIO-PFMCBP, on the progress and /or completion of the activities outlined in the Work Plan.

Within the first six (6) weeks of the assignment, the Treasury Adviser shall prepare a capacity building workplan, as outlined above. This will be prepared in consultation with human resource development staff and the HR&Capacity Building Adviser.


The Treasury Adviser shall then provide a duly endorsed monthly Workplan Progress Report to the Treasury Director; copy furnished to the PIO-PFMCBP, on the progress and /or completion of the activities outlined in the Work Plan.


In the first year of the assignment, the deliverables of the Treasury Adviser shall include, among others:
o Training and capacity building of local counterparts
o Report based on an effective review assessing current risk management based processes to be submitted three months after the assignment has commenced
o Design of risk management based processes within Treasury, including an implementation action plan to be submitted four months after commencement of the assignment
o Support the production of an updated consolidated Treasury manual
o Support the production and use of regular Treasury reports on Freebalance


In addition, the Treasury Adviser shall discuss and submit to the Treasury Director, no later than five (5) working days before the end of the current contract, an end of assignment Workplan Progress Report summarizing work undertaken against the Workplan, the degree to which the work has concluded, and a statement of outstanding tasks.


V. Qualifications and Competencies

Technical Competencies

· Degree/ Advanced Diploma in Accounts or Finance
· Minimum of eight (8) years of technical experience working in government accounts and finance in the areas of treasury and financial management information systems.
· At least three (3) years experience in supervision, control and implementation of government accounts and treasury functions specifically in the areas of government accounts, Financial Management Information Systems and external & internal audit process and the development and presentation of external and internal reporting to Government, Ministers, managers within the civil service, donors and other external users including the public.
· Knowledge and understanding of International Monetary Fund’s GFS guidelines and procedures, International Public Accounting Standards and procedures.
· Knowledge and understanding of generally accepted International Accounting Standards, practices and procedures and reporting requirements.
· Sound understanding of governance issues as they relate to financial transaction processes and data capture, reporting, fraud and mismanagement identification and control.
· Detailed experience in the secure management of user access to financial systems and information, information management, reporting and the maintenance of data integrity
· Experience in imparting training and conduct of workshops and seminars.
· Demonstrated computer literacy possessing skills in operation of MS Windows, Word, Excel, Power Point software, detailed experience in the specialist use of Freebalance and preferably one other internationally recognized FMIS application.
· Excellent command of English language both spoken and written. Knowledge of Portuguese and/or Tetum would be a distinct advantage.
· Work experience in developing countries particularly in Timor-Leste or in multicultural intrnational organizations would be an advantage.

Capacity Building
Competencies and Experiences

The adviser should be able to demonstrate experience in developing and delivering outcomes based capacity building activities, from the needs analysis stage through to execution, evaluation and analysis of ongoing support requirements.

The adviser should be familiar with the principles and techniques involved with adult learning, and understand capacity building methodologies.

The adviser must posess excellent oral and written communication skills and be experienced in designing and providing on-the-job training.

In addition:
· A commitment to supporting Timorese staff to achieve the outcomes and objectives of the Ministry;
· Committed to training and promoting the professional development of the Ministry’s staff;
· Recognition and respect of peers, and a demonstrated ability to interact effectively and collegially with peers at all levels;
· Demonstrated ability to make sound judgments on capacity issues that will require management referral and guidance;
· Demonstrated ability to work effectively in a mentoring role;
· Demonstrated ability to communicate ideas and analyses clearly and tactfully, both orally and in writing;
· Demonstrated ability to assist and support the development of useful processes and procedures within the unit to implement effectively the work program;
· Demonstrated ability to transfer skills and knowledge to counterparts in a culturally appropriate and effective manner – previous training or teaching experience a plus;
· Demonstrated ability to adapt to challenges in the workplace, including finding creative solutions; and,
· Familiarity with Timor-Leste and Timorese culture and/or willingness to acquire it.


VI. Performance Evaluation

Ongoing performance shall be assessed by the Programme Implementation Unit (PIU) in accordance with the functions and agreed deliverables in the TOR and performance review framework for advisors; and be subject to inputs and recommendations from the Steering and Supervisory Committees, joint supervision missions and the World Bank Task Team as appropriate.

Satisfactory execution of the indicated technical and capacity building functions mentioned above consistent with the Program’s objectives as evaluated by a Supervisory Review Committee at the end of the engagement. Where a contract extension is required, performance assessment results will be taken into consideration.

VII. SELECTION CRITERIA

Please refer to our application guideline for how to address these:

Selection Criteria

EXPERIENCE
Degree/ Diploma in Accounting /Finance


At least 8 years of technical experience working in government accounts and finance in the areas of treasury and financial management information systems.

Strong track record of working in a capacity building role, having demonstrated the ability to build skills and knowledge of counterparts in a culturally appropriate and effective manner.

At least 3 years experience in supervision, control and implementation of government accounts and treasury functions specifically in the areas of government accounts, Financial Management Information Systems and external & internal audit process and the development and presentation of external and internal reporting to Government, Ministers, managers within the civil service, donors and other external users including the public.

Knowledge and understanding of generally accepted International Accounting Standards, practices and procedures and reporting requirements.

Detailed experience in the secure management of user access to financial systems and information, information management, reporting and the maintenance of data integrity.

Work experience in developing countries particularly in Timor-Leste or in multicultural international organizations would be an advantage.

Fluency in English and
Fluency in Tetum/ Portuguese or other languages spoken in Timor Leste desirable

Tuesday, June 9, 2009

Whitewash

Very well written though.

It pats both the Bank and the Government on the back. Interesting given the fact that the Prime Minister of Timor-Leste had issued an edict to all members of the Government to cease all interactions with the "Bank" in the wake of the recent Consultant Contract Scandal.

Oh well everyone is kolega again.

Just like before.


[This message was distributed via the east-timor news list. For info on how to subscribe send a blank e-mail to info@etan.org. To support ETAN see http://etan.org/etan/donate.htm ]


From: east-timor-owner@lists.riseup.net [mailto:east-timor-owner@lists.riseup.net] On Behalf Of timor fight for our right
Sent: Monday, June 08, 2009 5:32 PM
To: john@etan.org
Cc: fbp@igc.org; east-timor@lists.riseup.net
Subject: The World Bank Press Release



World Bank Vice President visits Timor-Leste

Dili, June 6, 2009 – A representative of the World Bank, Mr. Jim Adams, Vice President for East Asia and the Pacific Region, visited Timor-Leste on June 4-6, 2009 to meet with The Honourable Emilia Pires, Minister of Finance, and donors.

The purpose of his visit was to reinforce the strong ties established between Timor-Leste and the World Bank. Specifically, Mr. Adams discussed a range of matters with the Minister of Finance including the planned restructuring of the Planning and Finance Management Capacity Building Program (PFMCBP), a program which has been under scrutiny in recent weeks.

"We want to make clear that this program has achieved outstanding results in the past 18 months. In November 2007, when I last visited Timor-Leste, it was evident to me that this program was not performing well in supporting the Government to address the extraordinary challenges it faced at the time. During 2008, however, and with the determined leadership of the Minister of Finance, this program supported the Ministry, the Government and all institutions of State, to achieve impressive results".

Budget execution tripled, from $180 million in 2006/07 to $550 million by the end of 2008. "A substantial part of the increase was directly supported by the work done under the PFMCBP" said Mr Adams. "The Government has established a climate of peace and stability. In 2008, major outlays were made on labour-intensive public works. Social programs were successfully funded and implemented, some 100,000 IDPs were able to return to their homes, and pensions were paid to veterans, the elderly and the disabled".

Mr. Adams also noted that "This program also enabled the Minister to pursue a reform agenda directed at better management of public finance and at strengthening the capacity of her Ministry. A new organic law has underpinned restructuring of the Ministry, innovative senior management arrangements and merit-based recruitments are showing results. However, there remain major challenges ahead in achieving lasting improvements in the capacity of Timorese civil servants to convert the country’s wealth into services that benefit the poor".

"For the Bank, the PFMCBP has become a flagship of aid effectiveness in Timor-Leste. In a short time, the Government, the Bank and the donors co-financing this effort have successfully implemented a program that is fully aligned with the Government’s priorities". END

www.worldbank.org/tl

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/TIMORLESTEEXTN/0,,contentMDK:22202664~menuPK:294027~pagePK:2865066~piPK:2865079~theSitePK:294022,00.html

Contacts
In Sydney:
Aleta Moriarty
amoriarty@worldbank.org
Ph: +61 2 9235 6545

In Washington:
Elisabeth Mealey
emealey@worldbank.org
Ph: +1 202 458 4475


Saturday, May 9, 2009

On the top of a waggon full with corn, complaining about hunger

To:

Sent: Saturday, April 25, 2009 9:18 PM

Subject: Re: Timor-Leste: Foreign Advisors - Remuneration (The Australian - 25 Apr 09)

Dear friends,

I am one of these "foreign advisors" in Timor-Leste and I am really shocked reading about the salary packages of "my colleagues". They really should be the top-managers of advisory. I am senior advisor for the Minister of Economy and Development, specialized for private sector development. I am comming from the private sector and worked as top-manager in multinational companies.and for the cambers of commerce in Germany and Brazil. Such kind of salaries cited in your article are not compatible with "market-prices", even considering that high class expertise is needed. I am working as an "integrated expert" and the Timorese Government has to contribute with US$ 388,88 per month. The German Government is paying my salary directly and I can asure you it is not more than a US$ 100,000 a year and I think this is really good payed.

The kind of exaggerated salaries for technical assitance in developing and underdeveloped countries cannot be justified to the tax-payers in the countries of origin. Furthermore, I feel myself personnally offended because now, with this discussion our reputation within the Timorese society is badly harmed. And I remember a jazz song which is saying, it is really cynical sitting on the top of a waggon loaded full with corn and complaining about hunger.

Bye

Tuesday, April 28, 2009

World Bank Does not Follow Its Own Rules?

---------- Forwarded message ----------
From: ;.....@gmail.com>
Date: Mon, Apr 27, 2009 at 8:31 PM
Subject: World Bank Letter
To: .....@gmail.com>


see attached letter. This is one of those, don't do it again letters. But shouldn't you not be allowed to do it in the first place? especially if someone does not meet the criteria in a TOR. What do you think?





Sunday, April 26, 2009

The $219,765 / annum "Special Parliamentary Liaison Adviser"

Well if you read the recent Tempo Semanal release here and the coverage in the Australian here, you will be able to read about the $219,765 / annum "Special Parliamentary Liaison Adviser".

A closer look at the documents show us some interesting things. The contract for $12,800.00USD/month for 12 months also includes:
  1. $3,000.00 for travel
  2. $1,000.00 for travel expenses
  3. $2,200.00/month (total $26,400) for living allowance. (It is hard to live on $153,600.00 tax free in Timor)
  4. incredibly a further $28,800.00 to be able to pay off taxes?!
  5. and some other stuff for an additional $10,965.00
  6. $219,765 in total.
Not bad for someone who apparently never finished University. University was always over rated anyway. But the Adviser is a long time friend of the Minister. BJF - "Bachelor of Job's for Friends"?

Interestingly, the contract expires in less than 90 days on 15 July 2009. So $135,000.00 is already in pocket. But will it be extended?

Scandalous: East Timorese go begging as foreign advisors rake it in (The Australian - 25 Apr 09)

In actual fact, Tempo Semanal seems to have broken the story, and the contracts in question can be viewed via this link

East Timorese go begging as foreign advisors rake it in

(Paul Toohey, The Australian - 25 April 2009)

Ines Almeida is a media flak for East Timor's Ministry of Finance. This year, she will earn a lot more than her Prime Minister, Xanana Gusmao, who has a base salary of $US1000 a month with a $US500 allowance.

Ms Almeida, a joint Australian-Timorese citizen who lives mostly in Timor, is treated as an outsider, paid in US dollars out of World Bank funds and grant money from individual nations. In her 2008-09 package, she earns a base of $US182,400 and picks up a further $US41,365 in travel expenses and living allowances, taking the package to $US219,765. When converted to Australian dollars, that comes to about $300,000. Kevin Rudd earns about $330,000.

The Weekend Australian has obtained a number of current individual consultancy contracts for foreign advisers in East Timor's Ministry of Finance. Ms Almeida's pay is at the lower end.

Former foreign minister Alexander Downer says the consultancy fees are "obscene", given that East Timor is the poorest country in Asia, where more than 50 per cent of the people earn about $US1 a day.

Rodney Lewis is a former Liberal candidate who works in and out of East Timor. This year, he will earn $341,623 for providing 271 days' work as senior legal adviser to the Ministry of Finance.

Mr Lewis gets a further $49,824 for reimbursible costs and contingencies, taking his 2008-09 contract package up to $391,447.

Ms Almeida and Mr Lewis are not the issue. It is the World Bank, in conjunction with East Timor's Finance Minister, Emilia Pires, which has approved the extraordinary consultancies. Ms Pires signs off on the contracts, which then go to the World Bank for final approval.

The World Bank's stated aim is to provide "financial and technical assistance to developing countries around the world".

Mr Downer says the UN never paid this sort of money when it was in East Timor, and still doesn't.

"It is obscene," he says. "These are aid programs; that's how the money gets there. I'm absolutely astonished. I know about these sorts of salaries and I know how much the UN pays.

"To earn $US250,000 in a year in the UN, you'd have to be very close to the top of the UN system. In a year, an under secretary-general of the UN would be paid a bit over $US300,000. I'm talking about the heads of the department of political affairs in the UN, or heads of peacekeeping missions, not media flaks or financial advisers."

Mr Downer says the UN caused a lot of resentment in the lead-up to East Timor's independence when its officials drove "comfortable cars" and lived on a luxury boat. Now the adviser pay situation had created an "enormous scandal".

"The amounts they're paying now are incredible," he says. "This sort of money is far more than East Timor's government ministers would earn and very few people in East Timor would be paid even $US20,000 a year. This is the sort of thing that becomes a bloody big problem for a country in this stage in its development. It's pretty sad."

Another Australian, Graham Daniel, is on a 12-month contract as a senior management adviser to the Finance Minister. For his 180 days' work through 2008-09, he is being paid $US236,160, plus $US60,361 in reimbursible expenses and contingencies, bringing his package to $US296,521.

Asked if he thinks the East Timorese would be shocked at how much he earned if they were aware of it, Mr Daniel says: "They shouldn't be made aware of it. I wouldn't be the most highly paid person in Timor. It's consistent with what I've been paid in other countries. My contract is certainly fairly high, but others are getting a lot more."

As a World Bank member country, the Australian Government makes a notional capital financial commitment to the bank, which may or may not be called in. In real terms, it transfers large amounts every year. In 2007-08, for example, it contributed $388.8 million to the World Bank's International Development Association.

Australia also makes one-off World Bank donations through AusAid. It gave $13 million to East Timor's five-year Public Finance and Management Capacity Building Program, out of which the consultants are being paid.

Mr Daniel says the money is not "granted to Timor" but to the project. "It can't be spent by Timor-Leste the way they want to spend it. It's tied under very stringent conditions. What I'm getting is no different to any other adviser in any other developing country and I've worked in many."

The East Timor Government says Mr Daniel has been humiliated in parliament by Opposition parties for allegedly mistreating a staff member. The incident is the subject of a ministerial inquiry.

"This is a vendetta against me because of highly corrupt people," he says. He declines to say who is behind it.

A US citizen, Francis Ssekandi, is another senior adviser to the Finance Minister. His 2008-09 package, including remuneration and travel expenses, is $US424,427 for 272 days' work.

"I earn $US700 a month," Ms Pires says.

"I personally think the money (advisers are paid) is too high ... Some of my advisers have been working in Afghanistan and Iraq and I had to compete to get them over here. It is way out of my control; we go by market standards.

"The contracts for the advisers we employ go through a rigorous public tender process. This process is very much following World Bank guidelines.

"From the time I've been minister (from 2006), we inherited (from the former Fretilin government) a dysfunctional Ministry of Finance. Thanks to these guys we have rebuilt the system. We have needed people with these skills -- and, hopefully, we won't need them for much longer.

"In post-conflict countries it is a complex job. Timorese people have not had the opportunity and education to do this. We need expertise. I am very much aware that technical assistance comes at a high price." Asked if she thinks the ordinary East Timorese people would understand the high pay packages, Ms Pires says: "I'm trying to explain to them. This is the world we live in. We all want to change the world, but I'm realistic."

Fretilin MP and party vice-president Arsenio Bano says they would not understand. "A lot of Timorese often cannot even get $1 a day," he says. "Fifty cents a day is a big thing. Even in a month some of them cannot get $5.

"The country is very poor and they (consultants) are paid too much. $US200,000 is more than the money that is invested in roads in the district of Oecussi this year. It's more than some of the school-feeding projects for 4000 students in one district of Ermera.

"It's amazing. I think there's a lack of responsibility here. The money is coming from development partners and from taxpayers ... They do not want to assist one person to earn $200,000; they want to assist one million people."

Nigel Roberts, the World Bank's country director for East Timor, New Guinea and the Pacific Islands, says he accepts that the issue is important.

"I agree the optics here may look incongruous but addressing the pressing needs of the country at this stage in its development requires help from outside, given the very small number of experienced and qualified Timorese staff available."

He says Timor is notionally rich because of oil, but there has been "a disconnect between the national income and personal incomes".

He says that while Timor's oil revenues have risen steeply, not all of that money is available for immediate expenditure because of laws which oblige the Government to put the bulk into a trust fund. Money is not being spent at the rates required and the foreign consultants are working to unblock that process.

"The Government had to be built from the ground up after independence, and this is taking time," Mr Roberts says.

He adds that last year's 12 per cent GDP growth rate relieved poverty and says that improvement has come as a result of the work of the consultants.

Mr Roberts says such fees are not unusual. "Timor-Leste needs to pay these rates if it is to attract first-rate talent, which I believe it is entitled to and needs in order to make the transition out of poverty," he says.

"Using cheaper expertise isn't going to help develop the country. In an ideal world, this type of expertise would be provided on a voluntary basis, but unfortunately no employment market anywhere in the world works on this principle, and people don't discount their services when they work in places like Dili or Moresby or Honiara."

President Jose Ramos Horta and Mr Gusmao were not available to comment yesterday but in March the President observed that "since independence about $3 billion has been spent on Timor but not in Timor".