ASEAN KEY DESTINATIONS
Xanana Gusmao to be new East Timor PM
'I have taken the decision to invite the Alliance of the Parliamentary Majority to form the government,' he said Ramos-Horta, referring to a coalition of parties headed by Mr Gusmao.
'The AMP has proposed that leader Xanana Gusmao become the prime minister. I have accepted it,' he said, adding that the former president would be appointed to his new post on August 8.
The decision provoked anger from former prime minister Mari Alkatiri, who had said earlier that he had already been informed of the president's decision.
'This is completely illegal and against our constitution. That is why, the government, in this matter, will never have the cooperation of Fretilin because this is an illegal government,' he said.
Fretilin, the former ruling party, won just 21 seats in the young nation's 65-seat parliament, well short of the absolute majority required to govern.
But it has said that as it won the most votes, it should have been asked to lead and would have invited other parties to form a unity government.
Fretilin also maintains that the alliance headed by Mr Gusmao should be declared invalid as it was formed after the polls and not beforehand.
Mr Gusmao's party, the National Congress for the Reconstruction of East Timor, won 18 seats in the June 30 polls but later formed a coalition which together holds 37 positions.
Mr Ramos-Horta, a Nobel peace laureate, has the authority to decide the composition of the government as the constitution is unclear on how to proceed under such an outcome. He had earlier publicly pushed for a unity government.
June's parliamentary elections, the first since East Timor won independence in 2002, were supposed to open a new chapter in the nation's young democracy after more than a year of tensions and uncertainty.
In April and May last year, unrest rocked the streets of the seaside capital Dili, when factional fighting among security forces left at least 37 people dead and forced international peacekeepers to be despatched to restore calm. AFP