Billions in international donor funds allegedly go missing in Palestine

According to Mona Chalabi on Guardian Datablog:

"The Palestinian economy is dependent on international aid and around 4 in 5 Gazans rely on donations for their survival...

... In 2011, the single biggest donor to Palestine was the United States followed by the EU who gave $281m and $206m respectively."

Other large donors in 2011 (in US dollars) included the UK (82.8 million), Sweden (76.4 million), Germany (57.5 million), France (43 million), Norway (39.6 million), Spain (34.9 million) Canada (34.3 million) and Italy (31.9 million).

In 2012 the Palestinian Authority only received 80% of the promised US$1 billion - well down from the $1.8 billion in 2008.

Continued mismanagement of dwindling international funds spells increasing economic hardship for West Bank and Gazan Arabs.

These donor countries must certainly be concerned at the allegations aired in The Sunday Times.

If the European Court of Auditors Report is confirmed - these countries will have no option but to call for an independent and transparent investigation into the possible misappropriation of foreign donor funds by the PLO and Hamas.

Transparency International - a Berlin-based watchdog monitoring corporate and political corruption - confirms that the state of paralysis afflicting the Palestinian parliament since 2007 as a result of the split between the PLO and Hamas has "given the executive unlimited management over public funds."

A Palestinian opinion poll conducted in July 2012 found that 71 percent of respondents believed that corruption existed in PA institutions under the control of President Mahmoud Abbas. Some 57% of respondents said the same of Hamas-controlled institutions in the Gaza Strip.

Similarly, a hearing held at the US House of Representative's Committee on Foreign Affairs in July 2012 heard evidence accusing the Palestinian political establishment of "chronic kleptocracy"

Transparency International seems to have pinpointed the crux of these monetary and financial woes affecting Palestinian Arab politics and policies with these few well chosen words: