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PA-Hamas financial dispute triggers Gaza banks crisis

[ssba]

Underscoring the uncertainty over implementing the recent Palestinian unity deal, Hamas authorities in the Gaza Strip effectively closed banks yesterday as a dispute over the salaries of civil servants escalated.

The announcement of a new Palestinian unity government precipitated the suspension of peace talks between Israel and the Palestinian Authority (PA) in April. Although PA President Mahmoud Abbas insists the government consists exclusively of apolitical technocrats, it is backed by both his Fatah faction and by Hamas, which remains dedicated to Israel’s destruction.

Numerous issues over how the government will operate remain unresolved. This was highlighted last week when around 40,000 Hamas civil servants in the Gaza Strip found their salaries had not been paid by the PA as they had expected. Although the government of Qatar announced that they would foot the bill, the wages remain unpaid. As a result, Hamas security forces yesterday confiscated credit card facilities from Gaza businesses, effectively shutting the banks in protest. A PA statement condemned the action, saying that, “The Hamas leadership should have looked its employees in the eye and told them frankly” about salaries.

In another sign of PA-Hamas discord yesterday, PA security forces in the West Bank reportedly stopped a Hamas procession in support of Palestinian prisoners from taking place, confiscating posters while two Hamas legislators were allegedly attacked. A Hamas statement condemned the incident as “a serious and unjustified violation that only serves the occupation.”

Another major issue which remains unresolved is security cooperation, given that Hamas and Fatah currently run separate and exclusive security regimes in the Gaza Strip and West Bank respectively. Fatah’s West Bank security apparatus cooperates with Israel’s army, often against Hamas activity. Hamas spokesman Hussam Badran indicated on Monday that the organisation will continue to use violence against Israelis. He called on “the men of resistance in the West Bank … to fulfil their duty … by targeting the occupation soldiers and its settlers.” He added, “The occupation must pay a high price in the blood of its soldiers and settlers.”