Israel Matzav

World Bank faces dilemma on Hamas contacts

Although the World Bank insists on its political neutrality, the Palestinian issue is complicated by U.S and European Union views that Hamas, an Islamist organization blamed for dozens of suicide attacks in Israel, is a terrorist organization.

"As long as Hamas is branded by major donors as a terrorist-related organization it'll be very difficult for the bank staff to proceed, and if they would like to, they will also have to go to the board" of member countries, one senior bank official said.

"There is no formal stop in grant disbursements, but they are not going out, so it is a dilemma," the official added.

Although there has been no direct order to suspend contact with Hamas government officials, bank officials said they were also seeking legal advice on whether staff could be indicted under U.S. or other law for collaborating with a terrorist group.

"Even as an employee of the World Bank you may have some protection, but you'll think twice before you really engage because you could be indicted in the U.S. or in Europe," said another bank official.

"As long as it's unclear how much backing you will have from the senior levels and also from the board, it's best not to engage at all," the official added.

posted by Carl in Jerusalem @ 12:57 AM