East Timorese President Jose Ramos Horta appointed prominent freedom fighter Xanana Gusmao as the country’s prime minister, but the decision sparked a new wave of violence in Dili and other towns on Monday.

Protesters took the streets of East Timor’s capital and clashed with police forces, throwing stones and burning tires before the security forces managed to disperse them using tear gas.

The president’s decision was triggered by inconclusive results in the June parliamentary elections, where the National Congress for Timorese Reconstruction (CNRT) and Revolutionary Front for an Independent East Timor (FRETILIN) failed to secure majority.

Gusmao’s CNRT gathered 24.10 per cent of the votes and occupied 18 seats, while the FREILIN led by Mari Alkatiri won 21 seats. Despite having majority, FRETILIN was unable to form a government after the CNRT allied with other smaller parties and gathered 37 seats of the 65 possible.

Ramos Horta said that he asked Gusmao to form a government along with other coalition members and occupy the premier’s chair despite criticism from Alkatiri who called the measure illegal.

“I have taken the decision to invite the Alliance of the Parliament Majority to form the government. The AMP has proposed that leader Xanana Gusmao become the prime minister. I have accepted it,” East Timor’s leader told journalists.

This decision sparked outrage among FRETILIN members and supporters, dozens of young people taking the streets and protesting, manifestations that quickly turned violent.

“Do not think that Fretilin has lost. Fretilin is a very important party at the parliament which will become the best opposition… I appeal to youths and the public to be calm and give the chance to Brother Xanana to govern,” Ramos Horta said trying to calm spirits.