East Timor's ombudsman is calling for the country's Justice Minister to be prosecuted following a corruption investigation.

Late last year, allegations surfaced that East Timor's Justice Minister, Lucia Lobato, had colluded with a friend in order for that friend to secure a $US1 million contract to rebuild the wall of a prison in the capital Dili.

At the time Ms Lobato said she welcomed an investigation by the ombudsman into the allegations. She said she was prepared to face justice – without using her ministerial immunities – if it found she was involved in any wrongdoing.

The ombudsman, Sebastiao Ximenes, is now calling for the prosecutor-general to further investigate and prosecute Ms Lobato. Ms Lobato has not responded to requests from the ABC to comment.