World Bank stops sending Palestinian aid

A World Bank report released on Wednesday questioned the oversight of hundreds of millions of dollars in funds sent to Palestinian President Mahmoud Abbas's office since Hamas came to power last year.
The bank urged donor nations, if possible, to resume aid via a central account controlled by the Palestinian finance ministry, rather than through the office of the president.
Since a Western aid embargo was imposed on the Hamas-led Palestinian government last March, Abbas's office has received at least $265 million in funds, mostly from Arab League states including Saudi Arabia, Qatar and Kuwait. Israel recently transferred $100 million in Palestinian tax revenues to the president's bureau.
The World Bank report, dated February, said it was "unclear" to what extent payments being made through Abbas's office were following the Palestinian government's established financial controls and internal audit procedures.
"Anecdotal evidence has raised concerns of a significant reduction in transparency and accountability because of erroneous reporting and a failure to submit financial reports regularly," the report said.
Israel has asked Abbas's office to provide a list of expenditures for the $100 million it transferred, Western diplomats said. Abbas's office, the diplomats said, has so far balked at releasing outside audits of its spending.
In its report, the World Bank said "when circumstances allow" donor nations should close all accounts with the office of the president and resume transfers directly through the Palestinian Authority. State Department spokesman Tom Casey said he had not seen the World Bank report but did not know of any US concerns about financial controls in Abbas's office.
"I am unaware of any specific concerns about problems with accounting through President Abbas's office," he told reporters in Washington, stressing the US desire to ensure that any monies were used properly.
Casey also said he did not expect a change in the policy of the Quartet of Middle East mediators of refusing to give money directly to the Hamas-led government until it recognises Israel, renounces violence and accepts interim peace agreements.