SPECIAL EDITION: Timor Leste's first oil baron - Nilton Gusmao

By Ted McDonnell

As a young teen Nilton Gusmao wasn't a particularly bright student; and he didn't impress his lecturers during his tertiary studies in Indonesia, in fact, he struggled. However, Nilton 'dos Santos' Gusmao has had the last laugh by becoming Timor Leste's first oil baron.

Nilton, who mixes property development with his supply of oil and petroleum to the Timor Leste government, is one of the lucky ones in his country.... One could say, a carefully chosen one...

Unlike most people who struggle on less than one dollar a day, Nilton doesn't face malnutrition or the issue of non-existent health care; he is one of Timor Leste's political elite.

He's a young man who recently boasted: "I have so much money I don't know what to do with it."
And, here's the thing his surname is not even Gusmao. He abandoned his father's surname dos Santos to adopt his mother's surname... to align himself with uncle Gusmao and no wonder given the riches the name has returned.

The "Gusmao - dos Santos" clan literally struck gold, or oil at least, when Nilton's uncle Xanana Gusmao was elected Prime Minister in 2007.

Almost immediately the Gusmao family, and associated families, or as the Timorese rather unkindly call them the 'Melbourne Club Mafia', which includes the Pires clan, became Timor Leste's Beverley HillBillies, 'the Clampetts' and much like Jed and family "black gold, Texas tea" - oil- has been their path to riches.

Photo: google.com

Caption: The original 'Clampetts' replaced by Timor Leste's political elite

Since 2010, Nilton Gusmao and his partners in the company Esperansa Timor Oan, have sold the Timor Leste government some $213 million in petroleum. Tens of millions of dollars can be added to that amount from previous years and other favourable contracts, the first of which was signed in 2008.

Nilton's first 'official' contract with the Timor Leste government came in 2008. It was signed by uncle Xanana and countersigned by the PM's closest ally, Finance Minister Emilia Pires. At the time of signing the contract it was considered illegal and the 'arrangement' was quickly changed to make the long term oil contract legal.

Pires, Gusmao's unelected, hand picked Finance Minister, was to face court this month in Dili, however, the judges who were to here the case were sacked by the Timor Leste government on lobbying from Pires' best mate the Prime Minister. Pires and the former assistant health Minister face corruption charges over a multi-million dollar contract handed to Pires' Melbourne-based husband. Other Gusmao Ministers are also under investigation but progress on those are now stalled after the sacking the foreign judiciary and corruption advisors.

One must wonder how long the Prime Minister will continue to 'run protection for his Pires and other Ministers. The question constantly asked in Timor Leste is "why does he protect them all so much... why?"

It seems, however, Nilton's first contract "gift" was signed by "mistake".
In 2009, Tempo Semanal reported that the Prime Minister had "mistakenly" signed the contract with fellow Ministers saying "it was not his fault".

At the time Nilton Gusmao laughed at the contract bungles that has made him possibly Timor Leste's wealthiest man... apart from uncle Xanana.

Tempo Semanal: When asked about the signature and name discrepancies on the contract document Nilton said: “I think this contract was signed with two companies, one with Mr. Silverio’s company and one with us, only that the names that were written on the two contracts were the same ones, but I signed the contract myself and it was not somebody else, therefore I do not think there was any fraud involved with the documents. It was merely a technical error that I signed over Mr. Silverio’s name instead of my own,” Nilton explained self-assuredly.

According to Nilton, the contract document signed by the Prime Minister (PM) some months ago was similar to an extension, but that the principal contract was signed by the Minister for Finance Emilia Pires on 26/05/2008.

“The result of the tender shows that the company Esperansa Timor Oan and Aitula Fuels won the tender to supply fuel to government cars, but at the time the government gave them a six months trial period and because they were able to show that they could provide a good service then the government extended their contract.”

“The contract extension the government granted at the time, was not just to one person but for the two of us, and it was because of this that at the time they wrote the wrong name, but because I did not notice it I signed it and it was only afterwards that I discovered that the name printed on the contract I had signed was incorrect,” Nilton said mockingly.

Repeated approaches to interview Nilton Gusmao have failed. Despite speaking very good English when asked questions he suddenly falls back to his native Tetun.

The other winner of major oil contracts in Timor Leste was Aitula Fuels. The directors are long time associate of the Prime Minister.

But here's the thing. Nilton, the rich little oil baron of Timor Leste, has not committed a crime. He has been fortunate enough to have adopted the name of Gusmao and have an uncle called Xanana, who happens to be the Prime Minister.

For Nilton at worst his riches have been gained by nepotism. The Prime Minister remains unaccountable for any of his decisions, it would seem.

The contracts to Nilton can be added to those given to other family members, including Xanana's former wife and his daughter from his first marriage.

No doubt many other Timorese struggling with poverty, unemployment and malnutrition would also like to adopt the Gusmao name given the riches it brings...