Steve Holland and Stephanie March
East Timor President Jose Ramo Horta is defending Prime Minister Xanana Gusmao's approval of a multimillion dollar government contract to a company linked to the PM's daughter.
Mr Gusmao has not been available to respond to revelations he approved a multi-million dollar contract to a company linked to his daughter and three other contracts to companies part-owned by the wife of another minister.
But Dr Ramos-Horta says he fully supports Mr Gusmao. "Just because someone became president, became prime minister, became a minister, does not mean his family all have to go into unemployment, all have to sell their business and stop," Dr Ramos-Horta said.