The economic pressure Israel is applying to the Palestinian
Authority has European countries worried. Dispatches calling
on Israel to transfer the funds it owes the P.A. are
becoming more and more urgent. But while the Europeans wait
for Israel to begin channeling funds to save the P.A. from
total collapse, it seems that Israel is not alone in
delaying the transfer of funds to the P.A.
Arab countries are also refusing to transfer donor funds
they have pledged to provide, but unlike Israel, which is
refusing to transfer the funds due to the Palestinian
Authority's involvement in the Intifadah, Arab countries are
refusing to transfer the money due to concerns that it will
go into the hands of private individuals.
The Arab donor countries and the banks handling the
transfers have demanded that P.A. Chairman Yasser Arafat
completely disclose the handling of the transfers and are
requesting detailed accounts reporting how the money is
spent.
This demand is based on past experience. Extensive funds
transferred by donor countries--particularly European
countries, the U.S. and Japan--after the P.A. was set up
were spent on projects designated for them. Through broker
fees, monopolies and many other techniques, a considerable
portion of the money was funneled into private accounts
belonging to high-ranking P.A. officials, including Arafat
himself, along with his economic advisor, Mohammed
Rashid.
Since the P.A. has been finding ways to evade meeting the
demands of Arab donor nations, the money has been delayed,
most of it being held in the Islamic Bank in the Persian
Gulf. Israel is doubtful that the P.A. will consent to the
demand, since it would like to retain control over the way
the funds are spent.
For now, the Islamic movements in the Territories are
gaining the most out of the situation. They have been
receiving millions of dollars in contributions from the Gulf
over the last few months. A significant amount of this money
goes to Davar, Hamas' civil service corps.
And now for a riddle: top officials from the Israeli Left
are demanding that the money be transferred to the
Palestinians as soon as possible. What money are they
referring to? The money Israel has held up due to the P.A.'s
involvement in various killings, or the money that the Arabs
have held up due to disclosures of corruption within the
Palestinian Authority?
