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 PA are becoming
more and more urgent. But while the Europeans wait for
Israel to begin channeling funds to save the PA from total
collapse, it seems that Israel is not alone in delaying the
transfer of funds to the PA. 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 PA 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 PA 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 PA officials, including Arafat himself, and his
economic advisor Muhammed Rashid.
Since the PA has been finding ways to evade 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 PA 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 Da'ava, 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 PA's
involvement in various killings, or the money that the Arabs
have held up due to disclosures of corruption within the
Palestinian Authority?
