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Home News Middle East Palestinian Authority & Gaza Strip

Hamas blasts PA over decision to renege on deal to transfer Qatari cash to Gaza

Ramallah backs out of the deal over concerns that the move would expose its banks to sanctions over financing of terrorism. Qatari envoy says Doha is  "working on finding alternatives."

by  Shachar Kleiman
Published on  09-12-2021 09:25
Last modified: 09-12-2021 09:25
IDF troops come under fire in Gaza hours after Qatar delivers $25M to HamasAFP

A postal bank in the Gaza Strip despensing Qatari funds, June 16, 2019 | File photo: AFP

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Hamas on Saturday castigated the Palestinian Authority over its decision to renege on a deal that would have seen Ramallah oversee the transfer of Qatari aid funds to the Gaza Strip, saying the PA was interested in "prolonging the siege on Gaza."

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The Palestinian Authority announced the move on Friday, citing concerns that the move would expose its banks to allegations of financing terrorism.

Qatari envoy to Gaza Mohammed al-Emadi, said that the PA's announcement came through its banks in the coastal enclave as the Gulf state was preparing to transfer funds to civil servants and poor families in the coming days.

Doha began providing Gaza with cash assistance two years ago. The controversial campaign, dubbed  "cash-for-calm policy" by its critics, kicked off in July 2019 when Doha pledged $480 million in aid to the West Bank and Gaza. According to Palestinian reports, in 2020, Qatar handed out some $240 million. In January, Doha said its annual aid to the Palestinians would stand at $360 million.

So far, all payments were made in cash and delivered by Qatari envoys.

The cash deliveries were suspended in May when Israel and Hamas engaged in an 11-day conflict.

Hamas has threatened renewed violence against Israel unless the payments are restarted, but Israel had demanded that the cash payments be replaced with regulated wire transfers, to better ensure the funds are used to pay functionaries and the needy in Gaza, rather than be funneled to terrorist activity.

Egypt, which leads the indirect ceasefire talks between the Jewish state and the terrorist group controlling the Gaza Strip, backed the demand and Palestinian Authority President Mahmoud Abbas had originally agreed to it as well.

On Saturday, however, Palestinian officials said that financial institutions in the West Bank are fearful of being sanctioned by international actors accusing them of aiding terrorist activities.

Emadi said that Qatar was "working on finding alternatives" to disbursing the funds to Hamas officials in the Gaza Strip.

Hamas official Abdeltaif al-Qanou on Saturday told Gaza media that the move "reflects the PA's desire to "prolong the siege on Gaza and the fact that it doesn't want to deal with anything that could alleviate the humanitarian crisis" in the coastal enclave.

Israel and Egypt have imposed respective maritime and land blockades on Gaza in 2007, after Hamas usurped power of it from the Fatah-controlled PA in a military coup, as part of their counterterrorism efforts.

"The PA's games have become transparent and are meant to put pressure on our people and undermine their steadfast stand. This is a non-national step, which comes at a time when our people are gathering behind the issue of prisoners," Qanou said.

He added that "the PA must shoulder its responsibility for the Gaza Strip and cease its racist actions towards it."

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