Mark Dodd – East Timor's highest court has declared legal the controversial "show of hands" vote that endorsed the leadership of then prime minister Mari Alkatiri at a national party congress in May.

The decision is a blow to President Xanana Gusmao, who attacked the Fretilin party congress for acting unconstitutionally in its bid to reassert the authority of the Alkatiri government in the face of worsening political violence.

The challenge was made by eight Fretilin party moderates on behalf of Jose Luis Guterres, a former UN ambassador who tried to unseat Dr Alkatiri but dropped out of the running when the party adopted a show-of-hands vote instead of a secret ballot.

Mr Guterres's supporters said the show of hands was designed to intimidate voters. Mr Gusmao agreed and later accused the Alkatiri camp of vote-buying. But on Friday, East Timor's Court of Appeal ruled that voting procedures adopted at the party congress were not in breach of the constitution.

"This panel of judges of the Court of Appeal decides (that) article 18 (constitution) does not require a vote of the representative assembly of members to be 'direct and secret'," it found. The court said there was no basis to call on Fretilin to reconvene a party congress to elect a new leadership, a demand made by Mr Gusmao.

The result of the leadership spill sparked widespread rioting in the capital Dili. On May 25, Australian troops were sent in to restore order.