Dili – Hundreds of people protested Thursday over the decision to clear former prime minister Mari Alkatiri of allegations that he formed a hit squad to kill his opponents during unrest last year.

Alkatiri, who stepped down amid mounting unrest and public pressure in June, was questioned by prosecutors in November over allegations that he was involved in arming civilians during bloody unrest in May.

Prosecutors on Monday decided to drop the investigation after East Timor and international prosecutors said they found no evidence to support the allegations.

About 500 people demonstrated in front of the presidential office on Thursday, demanding President Xanana Gusmao order the deportation of the two foreign prosecutors within 24 hours, and that East Timorese prosecutors re-open the case.

Demonstrators calling themselves Movemento Unidade Nacional ba Justica (United National Movement for Justice) carried banners saying: "Puppet parliament" and "Justice should be implemented transparently."

A representative of the protesters met with Gusmao for about three hours.

"We want to remind the president to feel how the people feel," Nino Pereirra told reporters afterwards. "The president appreciates and respects our demands and said that there should be changes in this country, but it should be done democratically," he said.

Alkatiri had vehemently denied allegations that he armed hit squads to silence his political opponents.

The tiny nation of one million was rocked by unrest in April and May that followed the dismissal of soldiers who had deserted, complaining of discrimination from superiors based on whether they came from the east or west of the tiny country.

Some 37 people were left dead in pitched battles between security forces during bloody street violence. More than 150,000 people fled their homes and more than 3,000 Australian-led peacekeepers were deployed to restore calm.