Dili – Australian banker Kirk McNamara has been cleared of petty theft charges. On Monday a Dili court dismissed accusations raised by the brother of Prime Minister Mari Alkatiri.

Judge Joao Henrique de Carvalho rejected a call by the prosecutor for the immediate arrest of Mr McNamara, outgoing manager of the ANZ Bank in Dili, saying that there were no criminal charges to answer. "No evidence has been presented to link Mr McNamara to any theft, only hearsay information," he ruled.

The charges arose from the burning during riots last December of a house owned by Vader Alkatiri, the Prime Minister's brother. The house had been rented by the bank as Mr McNamara's residence, and it was alleged that he had stolen window frames and doors from the ruins, a claim denied by the banker.

The judge added that the case was a civil matter that should be settled between the ANZ Bank and Mr Alkatiri.

It was the latest in a series of legal actions targeting foreign investors, and was followed closely by diplomats and foreign residents.