Palestinian Finances....Still a Mess...

They've never had a handle on finances, and donor countries don't seem to care...

A former World Bank official who is about to become the Palestinian finance minister has warned foreign donors that he has no idea where much of their money has been spent.

In the 14 months since Hamas won elections, Palestinian finances have descended into such chaos that there is now no way to confirm whether aid is going to its stated purpose, according to Salam Fayyad, 54, who is poised to start his second stint as treasury chief once the rival Hamas and Fatah factions finalise a "unity" government.

An estimated £362.5 million has flowed into Palestinian government coffers from abroad since the election that brought Hamas to power and ushered in a period of internal conflict that came close to all-out civil war.

The European Union alone provided £59.5 million last year and sent a far greater sum directly to hospitals, power generation projects and to families in need.

Now, Palestinian Authority spending is out of control, salaries are being paid to workers who never turn up, and nobody can track where the money is going, according to Mr Fayyad.

There was no way to be certain that aid was being used as intended, he admitted. "Please write this: no one can give donors that assurance. Why? Because the system is in a state of total disrepair."