Management of East Timor’s Oil Fund at top of transparency ranking

10 December 2009

Roseville, United States, 10 Dec – East Timor’s Oil Fund was considered one of the most transparent “sovereign funds” by the Linaburg-Maduell index, according to the most recent bulletin from the US Institute for Sovereign Funds.

In the bulletin for the third quarter of 2009, the East Timor fund was ranked in the top 20, in 18th place, with a score of six out of a possible 10 points on the Linaburg-Maduell transparency index.

The assessment of the transparency with which sovereign funds are managed takes into account strict criteria on the level and type of information provided about activities and its regular publication.

In 2008, the East Timor Oil Fund had been ranked 5th in another transparency index, from the Peterson Institute, right behind three US funds and the Norwegian pension fund.

Sovereign funds are state funds, made up of assets such as shares, bonds and other financial instruments, funded in foreign currency.

The East Timor Oil Fund was set up in 2005 and its operational management is in the hands of the Banking Payment Authority (central bank).

According to the most recent report (1 July to 30 September, 2009), the fund’s capital increased from US$4.902 billion to US$5.302 billion and cash injections in the form of royalties and taxes totalled US$332.3 million and withdrawals totalled US$351,750. (macauhub)