Australia urged to return $5bn to Timor-Leste and launch royal commission

Senate inquiry told Australia should also drop prosecution of Witness K and Bernard Collaery

Australia's negotiations with Timor-Leste should be the subject of a royal commission, and the government should return $5bn unfairly taken from the impoverished nation, a parliamentary inquiry has been told.

It should also drop the prosecution of Witness K and Bernard Collaery, who revealed the now infamous bugging of Timorese delegates during negotiations on what became the CMATS treaty.