Saudi Arabia will step in to help bail out the Palestinian Authority from its latest financial crisis, according to statements by a top PA official Saturday.
"The Saudi finance minister told the Palestinian Authority that the decision was made to transfer $100 million," said Palestinian Information Minister Riyad Al-Malki.
Al-Malki said the funds, expected to arrive in the next days, were pledged as part of an aid package approved by Arab donor countries at a Paris conference last December.
PA Prime Minister Salam Fayyad claims that in recent months his government has had difficulty paying its bills—specifically, the salaries of government workers—because a number of donor countries have failed to meet their pledges to send financial aid.
Former PA chairman and arch-terrorist Yasser Arafat established a legacy of profound financial corruption in his administration. The Fatah-dominated PA is believed to have siphoned vast amounts of money, said to number well into the billions, from its subjects as well as foreign donors. In spite of this, the European Union continues to partner Arab states in keeping the PA financially afloat.
The EU said earlier last week that it would dump another 40 million euros ($59 million) into the PA, bringing the total amount of EU handouts this year to nearly 300 million euros ($437 million).
Europe’s Arab counterparts in December’s Paris conference pledged to send a total of $7.7 billion to the PA over the course of three years, only a fraction of which has come forth. The PA has allocated what it has received for ‘projects’ rather than general spending, which covers basic needs like sanitation and healthcare services.
PA Prime Minister Fayyad says he needs more money to support his budget, and he faces embarrassment if the PA delays in paying its workers as it did earlier this year. Western countries backed Fayyad’s appointment last year after the PA President Mahmoud Abbas fired Hamas, known to be more conscientious in paying its workers, from his government.