No money for Hamas
2006-01-30 10:23
Jerusalem - Even before it embarks on its first effort at governing, the militant Islamic Hamas faces serious problems - international isolation because of its extremist policy and an inherited money crunch.
On Sunday acting Israeli Prime Minister Ehud Olmert gave notice that the money situation is about to get worse. He said after Hamas sets up a government, Israel will stop transferring tens of millions of dollars a month in customs and taxes.
Internally, Fatah, the old guard vanquished by Hamas in last week's parliamentary election, are refusing to co-operate with the new rulers, almost openly hoping for their failure.
International donors, who have annually made up a huge budget shortfall, are balking at funding a Hamas regime.
Fatah leaders are expressing defiance instead of shock over their loss, after winning just 45 seats in the 132-seat parliament, while Hamas took 74, putting an end to four decades of Fatah control over Palestinian politics.
"We will not allow ... anyone to take part in a government with Hamas," said Sufian Abu Zaydeh, an outgoing Fatah Cabinet minister. He made it clear in an interview with Israel's Channel 2 TV that Fatah is hoping Hamas falls flat in its mission of governing in its first-ever try.
"They said they have a different way of doing things, they can conduct negotiations without talking to Israel, without recognising Israel - let's see them do it," he said, while admitting that voters punished Fatah for its widespread corruption.
In an interview on CNN, Hamas leader Mahmoud Zahar said he expected aid from the Arab world if the West stops its funding and charged that up to now, Fatah operatives skimmed off most of the foreign aid for themselves.
The most immediate crisis, even before Hamas has a chance to form a government, is payday. The Palestinian Authority coffers are empty.
The monthly average transfer of 250 million shekels ($54m) could make the difference between paying salaries of security forces and civil servants or failing to meet the payroll.
Some officials favour transferring money in February while Israel examines the policies of the new Palestinian leadership, but Olmert ruled out handing over funds to a Hamas regime, even though Israel is obligated to transfer the money by interim peace accords.
On a larger scale, Palestinian experts estimate that the budget shortfall for this year will again approach $1bn. Up to now the deficit has been covered by Western aid, but that might stop.
At a briefing in Washington on Friday, US State Department spokesperson Sean McCormack said the situation is "very clear. The law and policy of the United States is that we do not provide funding, money, to terrorist organisations. Hamas is a terrorist organisation."
At the beginning of a short visit to Israel, German Chancellor Angela Merkel said on Sunday that she would be watching what Hamas does.
Even if governments do not want to fund a Hamas government, experts say one way out would be for foreign donors to fund aid projects directly, but that would still leave the headache of paying salaries for security forces and civil servants.
- AP