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Updated Examination Report on the Allocation and Distribution of Finances by the PA Published

A new examination report on the allocation and distribution of funds by the Palestinian Authority (PA) has been published within the framework of the Nazaha Project against corruption within the NGO sector.Following the previous report seamlessly, the report covers the period from June 2007 to end 2007.

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The PA Allocation and Distribution report focuses on the following:

•examining the incoming and outgoing finances of the PA

•defining the size of funds and support that the PA obtained during this period of time

•inspection of the mechanisms used for distributing these funds

•defining the obstacles and problems related to the allocation and distribution of these funds

•defining violations of the PA related to the allocation and distribution of these funds

In comparison to the previous reporting period, some notable changes took place.

First of all, the political framework has dramatically changed due to the violent take-over of Hamas in the Gaza Strip in June 2007 and the subsequent implementation of an interim government by Fatah in the West Bank. The new government led by Salam Fayyad, who is considered being moderate and very integer, is again given financial support from different donor countries. Moreover, since July 2007, Israel has gradually transferred earlier retained customs to the PA. The main sources of income of the Hamas government were cash payments received from some Arabic states and Iran, which were smuggled into the country. This situation made any monitoring of the national budget regarding incomings and outgoings impossible.

The updated examination report comes to the conclusion that since July 2007 the interim government led by Salam Fayyad managed to integrate the PA’s incoming and outgoing finances in a transparent allocation process, which is however still suffering from some shortcomings regarding organizational aspects.

The Nazaha Project is jointly implemented by the Konrad-Adenauer-Stiftung (KAS) and its Palestinian partner AMAN (Coalition for Accountability and Integrity). Its aim is to combat corruption in the NGO sector and to strengthen the Palestinian civil society through enhancing accountability and good governance.

The Nazaha Project is part of the European Union’s “Initiative for Democracy and Human Rights”.

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