RAMALLAH – A senior Palestinian official Friday said that Palestine could not pay the salaries of its employees since it is still awaiting promised emergency funds from Arab states. Nabil Qassis, the Palestinian Finance Minister, said that his ministry has not receive yet the funds to cover the government's shortfall which has been caused partially by Israel's withholding of Palestinian tax revenues. Qassis said that the government will not be able to pay the November salaries of 148,000 civil and military employee and the financial commitments to private sector. The Arab League pledged in early December to provide Palestine $100 million to cover salaries and other commitments. Qassis said that none of that money had been transferred, and that no date had been set for any such transfers from Arab states. The Palestinian minister warned the Palestinian economy is on the verge of collapse, following Israel's refusal to release 450 million Israeli shekel in tax revenues (some $120 million) during the month of November, a measure taken by the Israeli government in response to the UN General Assembly vote in November in favor of upgrading the Palestine status to nonmember observer state. On Wednesday, Israeli Finance Minister Yuval Steinitz completed the transfer of the funds to the Israel Electric Corporation, in order to pay for the Palestinian debt. The Israel's Radio said that Steinitz's decision leaves an outstanding debt of another $70,000 million. The hawkish Israeli Foreign Minister Avigdor Lieberman said the Israeli government would decide in four months' time what to do with the collected funds. “The Palestinians can forget about getting even one cent in the coming four months,” Lieberman said. Palestinian President Mahmoud Abbas has threatened to take the Israeli government to the International Criminal Court if the tax revenues are not released. Palestine is suffering a severe cash shortage and is having a hard time paying its employees. Palestinian officials said they would not be able to meet their commitments, including paying salaries, without the funds. Under the Oslo Accords, the Israeli government administers tax and customs duty payments on behalf of Palestine.
