East Timor 's Gusmao threatens to resign over Alkatiri

Former Interior Minister Rogerio Lobato earlier resigned over hit squad allegations. Picture / Reuters.

DILI - East Timor President Xanana Gusmao has said he will step down if the country's prime minister refuses to take responsibility for a weeks-long crisis in which the country has been racked by violence.

He spoke in a broadcast to the nation on Thursday local time after a second day of tense meetings failed to bring the resignation of Prime Minister Mari Alkatiri.

Mr Alkatiri is blamed by thousands of protesters for the violence in which at least 20 were killed, widespread looting and arson.

"I ask the responsibility of Mari Alkatiri over this major crisis that we are going through to maintain the government and the state's democracy," Gusmao said.

If Alkatiri failed to take responsibility, he said, "tomorrow I will send a letter to the national parliament to inform them that I will resign from the presidency of this republic".

"I am ashamed of the bad deeds that the government is doing to the people," Gusmao said.

Alkatiri told Portugal's Lusa news agency in a telephone interview that he would not resign.

He said the governing body of the Fretilin party he leads and which dominates parliament had accepted a proposal that he name one or two deputy prime ministers and give up his post as energy minister.

He said the party's Central Committee would debate the proposal on Saturday.

"The decision that was taken ... is that all the solution for this crisis should be found within constitutional limits," the prime minister told Lusa.

A spokesman for the prime minister's office said later that Fretilin leaders viewed the president's comments as a ploy and did not believe Gusmao actually intended to resign.

"What he really means is, he's appealing to the people to demand that he stay on as president and that they really destroy Fretilin," said the spokesman, who declined to be identified.

He said Gusmao was not threatening to resign on Friday but had given Alkatiri and Fretilin a week to act by demanding the party hold a special conference and new leadership election within that period.

Shortly before Gusmao spoke, Manuel Fernandes, Fretilin's deputy secretary general, said he expected Gusmao, Alkatiri and parliament's president to meet on Friday to discuss the situation.

East Timor plunged into violence in May after Alkatiri sacked 600 of the 1400-strong army for mutiny when they protested about alleged discrimination against troops from the country's west. But this was just one of many factors feeding the crisis and the sporadic fighting.

A 2500-strong international peacekeeping force led by Australian troops now patrols Dili.

Australian Broadcasting Corp.'s Four Corners television news programme reported on Monday that Alkatiri was present when then-Interior Minister Rogerio Lobato ordered an alleged hit squad linked to Fretilin to eliminate rivals.

Lobato has since resigned and is under house arrest following a court order for allegedly trying to re-arm civilians.

In his broadcast, Gusmao said Alkatiri had denied the hit squad reports. But he added: "However, it seemed like he knew and he ordered Rogerio Lobato to take those weapons."

Attorney General Longuinhos Monteiro told reporters Lobato was a suspect in a treason case.

"We will see the development of Rogerio's hearing to see whether Alkatiri is part of this case or not," he said.

- REUTERS