Palestinian PM slams fund cut

Palestinian Prime Minister Mohamed Shtayyeh said yesterday that the Israeli cabinet’s decision to deduct additional amounts from the Palestinian tax revenues amounting to 150mn shekels ($43mn) under the pretext of making payments to the families of the prisoners and those killed by Israel, “brings us back to square one of the crisis” and “demands an appropriate response from all of us.”

Shtayyeh said at the beginning of the weekly cabinet meeting held in Ramallah that the withheld money so far will reach 650mn shekels ($188mn), which “brings us back to square one of the crisis that we tried to overcome by wisely managing public funds.”

He added, “It is clear that Israel does not want us to stand on our feet. However, the government will remain active and efficient in managing public funds.”

The Palestinian Authority was forced to pay its employees half salary for six months this year after Israel deducted millions of dollars from its tax revenues leading it to the brink of financial collapse. The crisis was eased only after Israel agreed to return most of the tax revenues to the Palestinians.

Meanwhile, the Arab League has denounced Israel’s decision to deduct from Palestinians’ taxation funds as a hostile measure. Dr Saeed Abu Ali, the assistant secretary general for affairs of Palestine and occupied Arab territories, said in a statement “this official embezzlement of the Palestinian people funds affirms that the occupation authority continues with its scheme to undermine the Palestinian Authority.”

He called on the international community to exert “real and effective pressure” on the occupation Israeli authority to coerce it to stop the aggression on the Palestinians.” Dr Abu Ali also condemned Israeli authorities plan to build 2,000 settlements in the West Bank and registering “settlement real-estates” in official records.