GAZA CITY, 6 February 2006 — At least $700 million of funds from the Palestinian Authority’s coffers have been misused or stolen by officials over the past few years. Citing an internal investigation, Palestinian Attorney-General Ahmed Al-Moghani told reporters yesterday that 50 cases of “financial and administrative corruption” had been discovered and 25 officials arrested so far.
He said 10 officials had fled abroad but that the Palestinian Authority was seeking their extradition.
“The amount of money that was squandered and stolen is more than $700 million,” Moghani said. “Some of these millions were transferred into personal accounts here and abroad.”
Palestinian President Mahmoud Abbas had earlier transferred 32 cases of abuse to the attorney general for review and said corruption would not be tolerated. “We have the support from President (Abbas) to open all the files and strict instructions that everyone must be under the law,” Moghani said. The cases under investigation included a fictitious pipe factory funded by $4 million of Palestinian Authority cash and $2 million of Italian aid money, Moghani said.
“The factory existed only on paper and the investigation is under way to find out where the money went,” Moghani said.
He also cited land deals in the northern West Bank in which the land only existed on paper.
Welcoming the investigation, a spokesman for Hamas, which swept January’s parliamentary elections, said those responsible should be brought to justice. “One of Hamas’ top priorities for the coming stage in the Parliament and in the government is to open this file and to chase and bring to justice all the corrupt officials who stole public money and made huge wealth,” Mushir Al-Masri, the Hamas spokesman, said.
The disclosure came as Israel announced it was releasing to the Palestinians tax revenues it froze after Hamas’ election victory but said future transfers were unlikely.
Israel had been scheduled to transfer nearly $55 million to the Palestinian Authority last Wednesday but announced at the time it had decided to suspend automatic payments pending a policy review by interim Prime Minister Ehud Olmert.
Completing the review, Olmert’s Cabinet decided to transfer the sum Israel owed for January. Announcing the decision, Cabinet Minister Zeev Boim said: “It looks like it will be the last payment before a Hamas government is formed.”
The tax revenues Israel collects on behalf of the Palestinians are a main source of funding for the Authority’s budget and are used to pay 140,000 government workers.
“This is our money. This is not a favor,” Palestinian Economy Minister Mazen Sonnogrot said after the Israeli decision. “I hope that such payments will continue in the future.”
