Florindo Mesquita Lorego, an Timorese village chief, dispenses traditional justice.
Florindo Mesquita Lorego, an Timorese village chief, dispenses traditional justice.

Justice weighed in water buffalo



Justice in East Timor has always been measured in water buffalo. A goat theft costs one buffalo and a rape is worth two, though it varies from town to town. Though traditional justice was never institutionalised, it has remained an underpinning of village life. As the country moves to finalise the its first penal code this month, a government minister is on a crusade to extend the use of terra bandu, traditional law used to protect natural resources. Abilio Lima, the secretary for the environment, has already convinced about one-third of the nation's one million people that everything from cattle rustling to rape are crimes best resolved outside courtrooms by water buffalo justice. "When you talk about environment, you talk about human environment, about the social environment. I focus on the total comprehensive environment." In the past year Mr Lima says his office has approved a terra bandu system in about half the districts in East Timor. "The advantage of terra bandu is that it comes from the community," Mr Lima said. "Because it comes from the community, they have a responsibility to it." According to Mr Lima, the problem is the penal code: six years of independence and East Timor is still without its own set of laws, relying instead on Indonesian laws last updated in 1999. "People who don't like Indonesia don't respect the laws," Mr Lima said. "So we will use traditional law until we can agree on a national law." Judicial authorities are shocked. "If the secretary of state for the environment is doing this, he is very wrong," said Fernanda Borges, a member of parliament who sits on parliamentary judicial oversight committee. "He's very wrong because he is operating outside the constitution and outside the judicial system." Ms Borges has said she will launch a parliamentary inquiry into the matter. But officials in the justice ministry say they are not concerned with Mr Lima. Although no one in the ministry of justice had heard about Mr Lima's push, Crisagno Neto, the justice minister's permanent secretary, said he supported parts of the plan. "Rape is a crime you can't resolve through terra bandu," Mr Neto said. "You have to take that to court." But he added that smaller crimes like minor domestic violence could be resolved using traditional justice. "Terra bandu is easier and faster [than court trials] in rural areas for people who have no money," Mr Neto said. "But in cities and in areas where people have money, they can't use terra bandu. They need to go to court." East Timor is one of the most impoverished nations in Asia. Unemployment hangs at around 60 per cent and the average income is about US$1 (Dh3.67) a day. Before Indonesia's 1975 invasion, East Timor was a Portuguese colony and for 400 years whatever went on outside the capital Dili was ignored. During the Indonesian occupation, courts were notorious for their corrupt judges, whose decisions were not respected. When the Indonesians were ousted in late 1999 there was a lot of hope for improvement. But although independence came in 2002 - following two years of United Nations interim rule - East Timor is still struggling to create a set of comprehensive laws. Talk to any legal aid group in this tiny South-east Asian nation and they will tell you the best hope for East Timor is a judicial system, including formal justice with trained judges and lawyers. According to East Timor's constitution, everyone has the right to a fair trial and a lawyer and innocence is presumed until proven otherwise. There is no mention of water buffalo in the constitution. In a country where it is estimated that about half of all women will suffer gender-based crimes this year, officially closing the door on formal justice has serious consequences. According to the UN, only 132 women have come forward so far this year to report gender-based violence to the police - far short of the estimated 250,000 victims. Instead of a courtroom, many of these women will visit elderly village leaders like Florindo Mesquita Lorego. Mr Lorego is a balding, snowy bearded village chief in a hamlet hours away from the capital. He, along with a dozen other village leaders, decides terra bandu cases. "[Terra bandu] applies to people who are thieves, horse thieves, cattle rustlers, and rapists," Mr Lorego explained. "People who go into someone's garden without permission from the owner, that's a crime." * The National

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Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Six tips to secure your smart home

Most smart home devices are controlled via the owner's smartphone. Therefore, if you are using public wi-fi on your phone, always use a VPN (virtual private network) that offers strong security features and anonymises your internet connection.

Keep your smart home devices’ software up-to-date. Device makers often send regular updates - follow them without fail as they could provide protection from a new security risk.

Use two-factor authentication so that in addition to a password, your identity is authenticated by a second sign-in step like a code sent to your mobile number.

Set up a separate guest network for acquaintances and visitors to ensure the privacy of your IoT devices’ network.

Change the default privacy and security settings of your IoT devices to take extra steps to secure yourself and your home.

Always give your router a unique name, replacing the one generated by the manufacturer, to ensure a hacker cannot ascertain its make or model number.

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