Israel Matzav

Bankrupt?

Could it be that the world's largest recipient of foreign aid per capita with the expert suit-and-tie-clad businessman at its helm is going bankrupt? That's what the 'Palestinian Authority' is telling the Jerusalem Post on Tuesday morning. The reason for the 'bankruptcy'? No, of course it's not that they spent more than they took in. It's that they didn't take in enough. You see, many of the 'donor countries' - especially the Arab ones - haven't been ponying up their money now that a barrel of oil 'only' costs $126 instead of $147....

The officials told The Jerusalem Post that the PA wouldn't be able to pay July salaries to more than 150,000 public servants and may be forced to close down several government institutions as a result of the deepening crisis.

I know one place they could cut back - they could stop paying 'salaries' for all their 'employees' in Gaza who haven't come to work in over a year. At least 40% of the 'Palestinian Authority's 'budget' is spent in Gaza, which they do not even control.

The officials disclosed that the deficit in the PA budget has risen in the past six months from $1.6 billion to $2b.

"We are facing a real crisis," a top PA official told the Post, adding "we are on the brink of bankruptcy."

Another PA official warned that the financial crisis would undermine the PA and limit its ability to reach a peace agreement with Israel.

"We will lose the support of the Palestinian public if we stop paying salaries to our civil servants and policemen," he said. "This is happening at a time when Hamas is receiving large sums from Iran and radical Islamic groups."

PA Prime Minister Salaam Fayad expressed concern that the PA could face a financial crisis if the donor countries, particularly some Arab states, failed to transfer to the PA treasury the funds they had pledged to donate at the Paris conference.

Fayad described the financial situation of the PA as "difficult," adding that his government was making enormous efforts to provide the necessary money to pay salaries to its employees.

As of January 2006, the 'Palestinian Authority' had some 140,000 employees, 58,000 of whom were employed in the 'security services.'

The Palestinian Economic Council for Development and Reconstruction [PECDAR] said Monday that the PA had received only $900m. of the $7.7b. promised during the December 2007 Paris Donors' Conference for supporting the Palestinians.

The money was promised to the PA over a period of three years by nearly 90 countries and international organizations during the Paris conference.

According to PECDAR, the PA was supposed to receive up to $3b. of it during 2008.

However, PA officials complained that that the donors had so far paid less than 35 percent of the promised sum.

The officials said they were particularly disappointed with the majority of the Arab countries for failing to meet their financial commitments toward the Palestinians.

"Most of the Arab countries are now setting conditions for providing us with financial aid," the PA officials said. "Some are saying that they will give us the money only after we end our differences with Hamas, while others are suddenly talking about the need for reforms and transparency in the Palestinian Authority."

What a shocking concept! You mean, even the Arab countries don't want to throw their money down a black hole anymore? I'm shocked. Just shocked. Call in the UN! They're always willing to throw money away! But get a load of this:

"The number of households in Gaza below the consumption poverty line continued to grow, reaching 51.8% in 2007, despite significant amounts of emergency and humanitarian assistance," the UNRWA statement said.

Meanwhile, poverty rates in the West Bank fell to just over 19%.

...

The report concluded that "Israeli-imposed movement restrictions in the occupied Palestinian territory, whose population is estimated to have grown by about one third since 1999, have resulted in considerable regression over the past eight years and remain the main barrier to economic recovery and development."

It doesn't sound like the 'West Bank' has regressed at all, does it? Hmm. Maybe if the IDF were back in Gaza keeping the terrorists in check (like they are in the 'West Bank'), Gaza wouldn't 'regress' anymore either.

posted by Carl in Jerusalem @ 7:48 AM