Palestinian coffers empty: PM

2006-04-05 20:46

Gaza City - Prime Minister Ismail Haniya said on Wednesday that the Palestinian coffers were completely empty as he hosted the first regular cabinet meeting of his Hamas-led government.

Haniya said his administration would struggle to pay government salaries as a result of a financial crisis, partly brought on by Israel's refusal to hand over customs duties that it used to collect for the Palestinian Authority, now the administration is led by the radical Islamist movement.

"We are making every effort to pay the government employees despite the financial crisis," Haniya said at the start of the meeting in Gaza City.

"We inherited a situation in which we not only have no money in the treasury, but a whole load of debts," he added.

The European Union and United States have both threatened to slash funding to the Palestinian Authority unless Hamas commits itself to non-violence and acknowledge Israel's right to exist.

- AFP