Call for Arafat cash probe

Date: 13/06/02

By David Cronin

THE European Commission will next week try to counter growing suggestions that its aid to the Palestinian Authority is being siphoned off to fund terrorism.

Some politicians have seized on reports in Germany and Austria about the alleged misuse of EU funds by Yasser Arafat's government.

Austrian Socialist MEP Hannes Swoboda has called for a parliamentary committee to investigate if 'terrorist activities have been financed directly or indirectly with the European citizen's tax'.

External Relations chief Chris Patten is due to address these concerns when he appears before the foreign affairs and budget committees next Wednesday (19 June).

His spokesman said Israel has not supplied hard evidence to support the allegations. 'Privately, the Israelis recognise this,' added Gunnar Wiegand.

The Commission has studied a 103-page document produced by Israel's Ministry for Foreign Affairs, detailing Arafat's alleged links with terrorists. But Wiegand said it did not substantiate claims that EU aid had been misused, adding that the International Monetary Fund carried out regular inspections.

The Israeli report apparently states that members of militant groups such as Tanzim and the Al Aqsa Martyrs were paid by the Palestinian Authority.

The EU transfers about €10 million in budgetary assistance to the Palestinian Authority every month.

Meanwhile, Patten is also due to present ideas on reforming the Palestinian Authority when he meets EU foreign ministers on Monday.

His proposals will cover such issues as ensuring the independence of the judiciary.

The European Commission is attempting to counter allegations that its aid to the Palestinian Authority is being used to fund terrorism.