Gangs went on a rampage of arson and looting in Dili as the president, Xanana Gusmao, took charge of national security.
The gangs, which are loosely allied to feuding factions of East Timor's armed forces, defied a 2,500-strong Australian-led peacekeeping force that East Timor asked for last week to help put down violence that has claimed at least 20 lives.
Meanwhile President Gusmao told a news conference that he had taken sole responsibility for the nation's security, including information and intelligence services, after a week of violence sparked by a split in the army.
He said he had made the decision in close collaboration with Prime Minister Mari Alkatiri, who many accuse of sparking the crisis by dismissing a group of protesting soldiers last month.
