Last update - 00:00 03/06/2007
PA Finance Min. says disbursing aid funds via new PLO account
By The Associated Press
Palestinian Authority Finance Minister Salam Fayyad said in an interview Sunday that a new PLO account has been established to bypass an international boycott of Hamas.
Fayyad said he has begun disbursing tens of millions of dollars of foreign aid via the account, including partial salaries for Palestinian civil servants.
The fund was established in mid-May as a channel for foreign aid, said the finance minister, an independent. Hamas is not a member of the PLO, the Palestinians' political umbrella group. The new arrangement allows for funds to be transferred to the PLO account, without banks violating U.S. anti-terror regulations. The U.S. and European Union have branded Hamas a terrorist group.
Money received so far includes $50 million (37.2 million) from Saudi Arabia, $44 million (32.8 million) from Qatar, $10 million (7.4 million) from Norway and - most recently - $80 million (59.5 million) from the United Arab Emirates, Fayyad said.
Fayyad said he has not yet received a commitment from the European Union to channel aid through the new account, but that European donors are now working closely with the Palestinian Treasury.
The minister said he began disbursing money from the account several days ago, mainly for salaries of civil servants.
During a year of Hamas-only rule, the 165,000 government employees received only partial salaries as a result of a foreign aid boycott. Last fall, the European Union began sending aid payments directly to Palestinians, sidestepping the Hamas government.
In March, Hamas brought the Fatah movement of PA Chairman Mahmoud Abbas into the government in hopes of ending the boycott. However, many foreign donors remain reluctant to resume the full flow of aid, because Hamas continues to reject demands that it recognize Israel and renounce violence.