Palestinian Authority to Pay Reduced Salaries as Israel Blocks Funds

 Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
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Palestinian Authority to Pay Reduced Salaries as Israel Blocks Funds

 Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)

The Palestinian Authority said on Tuesday it will pay public sector workers 60% of their December salaries this week as it grapples with the long running fallout of Israel's refusal to transfer tax funds earmarked for Gaza.

Funding to the Palestinian Authority, the body which exercises limited governance in the occupied West Bank, has been severely restricted by the months-long dispute over transferring tax revenues Israel collects on behalf of the Palestinians.

Funding from international donors has also been squeezed, falling from 30% of the $6 billion annual budget to around 1%, Palestinian Prime Minister Mohammad Shtayyeh said.

"The funding situation of the Authority is very difficult," he said, following a meeting of the cabinet.

The funding dispute has been a source of friction between Israel and the Palestinians since the start of the war in Gaza in October, when Israeli Finance Minister Bezalel Smotrich refused to release all the funds, accusing the PA of supporting the Oct. 7 attack in Israel led by the Islamist movement Hamas.

Under interim peace accords signed in the early 1990s, Israel collects taxes on the Palestinians' behalf and typically transfers them to the PA monthly on the approval of the finance minister.

However, transfers have been stalled since October, when Smotrich withheld around 600 million shekels ($164.51 million) of the total 1 billion shekels due for transfer, prompting the Palestinian Authority, which says Gaza is an integral part of Palestinian territory, to refuse to accept any funds.

"We cannot accept conditions on our money. We will remain committed to the prisoners and martyrs and to our people in the Gaza Strip, not out of favor, but by virtue of our national, religious and moral responsibility," Shtayyeh said.

Although Gaza is controlled by Hamas, the Palestinian Authority continues to fund essential areas of the blockaded enclave's budget including paying the salaries of health workers.

The dispute comes ahead of a visit by US Secretary of State Antony Blinken, who has pressed Israel to resolve the budget dispute, which has left thousands of Palestinian public sector workers without pay for months.

The dispute over the Palestinian Authority budget coincides with a separate dispute over funding to UNWRA, the United Nations agency which pays for emergency relief for Palestinians.

Much of the UNWRA budget has been cut off since Israel accused 12 of the agency's 13,000 Gaza workers of involvement in the Oct. 7 attack. The claims came as Israel faced a genocide case at the International Court of Justice over its war on Gaza, and after years of it calling for the agency to be disbanded.



Justice or Assassination: Leaders React to Israel's Killing of Nasrallah

An Iraqi volunteer holds a picture of Lebanon's Hezbollah leader Hassan Nasrallah, who has been killed, in Basra, Iraq, on September 27, 2024. (Reuters)
An Iraqi volunteer holds a picture of Lebanon's Hezbollah leader Hassan Nasrallah, who has been killed, in Basra, Iraq, on September 27, 2024. (Reuters)
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Justice or Assassination: Leaders React to Israel's Killing of Nasrallah

An Iraqi volunteer holds a picture of Lebanon's Hezbollah leader Hassan Nasrallah, who has been killed, in Basra, Iraq, on September 27, 2024. (Reuters)
An Iraqi volunteer holds a picture of Lebanon's Hezbollah leader Hassan Nasrallah, who has been killed, in Basra, Iraq, on September 27, 2024. (Reuters)

World leaders warned of potential repercussions on Saturday after Lebanese armed group Hezbollah announced its longtime leader Hassan Nasrallah was killed in an Israeli air strike on a suburb of Beirut.

The killing of the Iran-backed group's chief has intensified fears of all-out war in the Middle East.

US President Joe Biden welcomed "a measure of justice".

- Iran -

First Vice President Mohammad Reza Aref warned Israel that Nasrallah's death would "bring about their destruction", Iran's ISNA news agency quoted him as saying.

The foreign ministry of Iran, which finances and arms Hezbollah, said Nasrallah's work will continue after his death. "His sacred goal will be realized in the liberation of Quds (Jerusalem), God willing," spokesman Nasser Kanani posted on X.

Supreme leader Ali Khamenei announced five days of public mourning.

- United States -

Biden said Nasrallah's death was "a measure of justice for his many victims, including thousands of Americans, Israelis and Lebanese civilians".

Washington supports Israel's right to defend itself against "Iranian-supported terrorist groups" and the "defense posture" of US forces in the region would be "further enhanced", Biden added in a statement.

Vice President Kamala Harris said Nasrallah was "a terrorist with American blood on his hands" and said she would "always support Israel´s right to defend itself against Iran and Iran-backed terrorist groups such as Hezbollah, Hamas, and the Houthis."

Leading Republicans in the House of Representatives also welcomed the end of a "reign of bloodshed, oppression, and terror" by "one of the most brutal terrorists on the planet".

- Russia -

Russia's foreign ministry said "we decisively condemn the latest political murder carried out by Israel" and urged it to "immediately cease military action" in Lebanon.

Israel would "bear full responsibility" for the "tragic" consequences the killing could bring to the region, the ministry added in a statement.

- Germany -

Foreign Minister Annalena Baerbock told ARD television that the killing "threatens destabilization for the whole of Lebanon", which "is in no way in Israel's security interest".

- Canada -

Canadian Prime Minister Justin Trudeau described Nasrallah as "the leader of a terrorist organization that attacked and killed innocent civilians, causing immense suffering across the region".

But he called for more to be done to protect civilians in the conflict, adding: "We urge calm and restraint during this critical time."

- Britain -

Foreign Secretary David Lammy said in a post on X that he had spoken with the Lebanese premier.

"We agreed on the need for an immediate ceasefire to bring an end to the bloodshed. A diplomatic solution is the only way to restore security and stability for the Lebanese and Israeli people," he said.

- France -

French Foreign Minister Jean-Noel Barrot demanded Israel "immediately stop its strikes in Lebanon" and said it was opposed to any ground operation in the country.

France also "calls on other actors, notably Hezbollah and Iran, to abstain from any action that could lead to additional destabilization and regional conflagration", the foreign ministry said in a statement.

- United Nations -

UN chief Antonio Guterres said he was "gravely concerned by the dramatic escalation of events in Beirut in the last 24 hours".

- Hamas -

Palestinian armed group Hamas, whose unprecedented October 7 attack on Israel sparked the devastating war in Gaza that drew in fellow Iran-backed groups including Hezbollah, called Nasrallah's killing "a cowardly terrorist act".

"We condemn in the strongest terms this barbaric Zionist aggression and targeting of residential buildings," Hamas said in a statement.

- Palestinian Authority -

Palestinian President Mahmud Abbas offered his "deep condolences" to Lebanon for the deaths of Nasrallah and civilians, who "fell as a result of the brutal Israeli aggression", according to a statement from his office.

- Houthis -

The Iran-backed Yemeni Houthis militias, who have been firing on ships in the Red Sea in solidarity with Hamas, said in a statement that Nasrallah's killing "will increase the flame of sacrifice, the heat of enthusiasm, the strength of resolve" against Israel, with their leader vowing Nasrallah's death "will not be in vain".

- Türkiye -

President Recep Tayyip Erdogan, whose country maintains diplomatic relations with Israel but who has been a sharp critic of its offensive in Gaza, said on X that Lebanon was being subjected to a "genocide", without referring directly to Nasrallah.

- Cuba -

In a post on X, Cuban President Miguel Diaz-Canel called the killing a "cowardly targeted assassination" that "seriously threatens regional and global peace and security, for which Israel bears full responsibility with the complicity of the United States."

- Argentina -

Argentine President Javier Milei reposted on X a message from a member of his council of economic advisers, David Epstein, who hailed the killing.

"Israel eliminated one of the greatest contemporary murderers. Responsible, among others, for the cowardly attacks in #ARG," it said. "Today the world is a little freer".

- Venezuela -

Venezuelan President Nicolas Maduro expressed solidarity with Nasrallah and Lebanon.

"They want to justify it, but to assassinate him, they attacked buildings, housing estates and killed hundreds of people. There's a word for this: crime."