Joao Carrascalao, a cabinet member of the United Nations Transitional Administration in East Timor, told ABC radio on June 4 that telecommunications carrier Telstra is spying on Timorese leaders' phone calls for the Australian government.
Telstra has played a major role in restoring East Timor's telecommunications systems, but has failed to set up a main switch in Dili which means that all communications must go via Australia. This makes it easy for calls to be monitored.
Telstra said it does not confirm or deny monitoring and only monitors communications as directed by Australian law enforcement agencies.