Palestinians Downplay Funds Transfer Crisis

GAZA CITY, April 23, 2006 (IslamOnline.net & News Agencies) – The Palestinian government played down Sunday, April 23, reports that regional and international banks are balking at transferring funds from donors under US pressures.

"The Arab League will soon transfer $71 millions to the Palestinian Authority through banks," Telecommunications and Information Technology Minister Jamal El-Khodary told IslamOnline.net.

He said the transfer was only delayed by three consecutive official holidays in Egypt, the seat of the pan-Arab organization headquarters.

"Once the holidays are off, we would get the money and be able to pay our civil servants," he added.

The Arab League has opened an account at the Misr International Bank, which French bank Societe Generale gained control of last year.

During a March summit in Khartoum, Arab leaders pledged $55 million a month to the cash-strapped PA.

The Palestinian government needs $170 million a month, out of which $115 million goes to 165,000 civil servants.

Positive

The Palestinian minister shrugged off reports that Palestinian banks and financial institutions had decided not to deal with funds offered to the PA.

He said Palestinian banks were "dealing positively and effectively" with the government.

El-Khodary admitted that one bank, which he refused to name, is refusing to transfer money to PA.

"We do not have any problem with the rest of the banks and financial institutions."

A Palestinian official said on Saturday, April 22, that the Amman-based Arab Bank recently turned away a transfer of $50 million from Qatar.

The US has pressured the bank to freeze the PA's main treasury account.

US officials threatened the Bush administration could take punitive action against banks that help provide money or services directly to the new government.

"If an organization or individual is facilitating direct fundraising for Hamas, they open themselves up to action by the United States," US Treasury Department spokeswoman Molly Millerwise warned.

Under US law, any foreign bank that refuses to cooperate in cutting off funding to Hamas could have its US assets frozen and its access to US financial markets denied.

The Bush administration has been spearheading a campaign with Israel against the new government.

Fundraising

The Palestinian telecommunications and information technology minister lauded, meanwhile, popular fund-raising campaigns.

"People and associations are supporting the Palestinian people," he told IOL.

El-Khodary estimated at 1.16 million dollars the donated money deposited so far at Misr International Bank.

"We have also received pledges of more funds."

In a related development, Moroccan MPs of the Justice and Development party have decided to donate one month salary for the Palestinian people.

The sum, estimated to worth $168,000, is meant to "assist the Palestinian people and their PA in the face of the economic and financial embargo spearheaded by the US and the EU."

Muslims and Arabs worldwide are championing fund-raising campaigns to help the Palestinian people, seen as being punished by the West for electing Hamas to power.

Launching "Let's Be Supporters for Our Besieged Brothers" campaign, Austrian Muslims are promising to donate one hundred euros per month for every Palestinian family.

The Itlaf Al-Kheir, which has up to 56 affiliate organizations in the Muslim world, has also launched a similar campaign, starting with Algeria.

Sheikh Yusuf Al-Qaradawi, the head of the International Union of Muslim Scholars (IUMS), has urged world Muslims to financially support the suffering Palestinian people.