Authority's funds misused by ministers, auditor says

ON Saturday the auditor of the Palestine Authority, Mr Jarar Kidwa, charged ministers and their ministries of misappropriation and misuse of $326 million (£216 million). This was almost 40 per cent of the Authority's budget which amounted to $886 million for 1997.

Speaking on official Palestine television, Mr Kidwa said: "All ministers, deputies and directors general who are behind this waste will be brought to justice."

Some funds from foreign donors, including the EU, have found their way into the private accounts of ministers and officials which were opened without the approval of the Finance Ministry, he stated.

The names of those accused of alleged misappropriation have been turned over to the President of the Authority, Mr Yasser Arafat, who commissioned the 600 page report, details of which have not yet been made public.

A report in the daily al Hayat al Jadida said ministers and officials were living far beyond their means or using their positions to avoid paying customs on luxury goods. For instance, $45 million to £50 million was said to have been lost in duties on cars imported by officials.

Palestinian sources suspect that these belated verbal assaults on corruption are meant to head off the clean up campaign demanded by the Legislative Council which has made a serious effort to reform the bureaucracy. Last week, the Council focused on the chaos in ministries where staff meetings are never held, budgets are ignored and personnel neither exercise authority nor accept responsibility.

In an endeavour to increase revenues the council's legal committee has recommended a 10 per cent tax on tobacco, swimming clubs, horse stables and a 20 per cent tax on places of entertainment.

As major importers and owners of such establishments are cronies of Mr Arafat, he is expected to resist council interference and, instead, stage an anti corruption public relations exercise which would temporarily satisfy the pub lie but not root out the problem.

Meanwhile, the Palestinian journalist and broadcaster detained a week ago, Mr Daoud Kuttab, remained incarcerated in an office, at the Ramallah police station.

Dr Mubarak Awad, the Palestinian peace campaigner, told The Irish Times that Mr Kuttab had neither been charged nor allowed representation by a lawyer.

On Friday, Mr Kuttab, a recipient of the International Press Freedom Award, began a hunger strike to protest his detention.