Mark Dodd – An Australian businessman working in East Timor has been found guilty by the World Bank of corruption in connection with the procurement of school equipment for the impoverished country.

A World Bank investigation into procurement contracts in East Timor found Rob Foster guilty of fraudulent practice in 2000 and ordered he be banned for three years from any involvement in government tenders. News of the ban has been welcomed by East Timorese authorities.

The World Bank named Mr Foster and three others for collusion in deciding the outcome of a $US245,000 tender for the procurement of school furniture. The tender was part of an urgent rehabilitation project to repair East Timorese schools destroyed by pro-Jakarta militias following the bloody 1999 vote for independence from Indonesia.

A World Bank statement said an internal investigation uncovered the collusion and the contract was immediately cancelled and then re-tendered to support local East Timorese carpenters. The investigation found that the named firms and individuals colluded to decide who would win contracts under the Trust Fund for East Timor to purchase 15,000 sets of chairs and desks, it said in a November 22 statement released on Thursday.

East Timor's Secretary of State for Investment Jose Teixeira said the outcome was welcomed by his Government. And he warned Mr Foster's Timorese business visa could be reviewed.

"This is a matter that comes under our immigration law. The Government of Timor Leste [East Timor] takes this very seriously," he told The Australian, adding: "It's part of our commitment to weed out bad businesses that became all too pervasive during the UNTAET [United Nations Transitional Administration in East Timor] period."

Mr Teixeira said Mr Foster had been involved in several business projects in East Timor, including a fuel distribution business, in addition to holding an executive position on the Australia-East Timor Business Council.