Secretary General of the Arab League Amr Moussa told the Palestinian Prime Minister Ismael Haniyeh, that Hamas does not have sufficient funds deposited with the Arab League, and that he could not transfer any funds from the special account in Egypt at the present time.

Secretary General of the Arab League Amr Moussa told the Palestinian Prime Minister Ismael Haniyeh, that Hamas does not have sufficient funds deposited with the Arab League, and that he could not transfer any funds from the special account in Egypt at the present time.

This news came in a letter sent by Moussa to Haniyeh and was also published by Al Quds Al-Arabi newspaper on Wednesday.

"There is a Court ruling which obliges the Arab League to disclose the funds they have for Hamas. This ruling was issued following the League’s declaration of opening a special account, in which funds that were with the delegation of the Palestinian Authority Prime minister deposited before passing through Rafah crossing into Gaza.  The funds were Thirty two millions and four hundred Ninty-nine thousand dollars.”

The letter also said that such a statement was made on the advice of the attorney of the Arab League.“The League has informed the court that Hamas has no money deposited at the Arab League and it has never received or given money on behalf of Hamas to anyone, said the letter.” Moussa also said that the mentioned funds are deposited in a special account at the Cairo bank based on requests from the Egyptian Authority and the Palestinian Representative at the Arab League.

Local observers said, by doing so, the Arab League is adhering to the US pressure which prohibits transfer of funds to the Palestinian Government in an attempt to force the Palestinians to change government formed by Hamas who had an overwhelming victory in the one of the most democratic elections in the Middle East.

The US government and the EU stopped all financial aid to the Palestinian Government after Hamas assumed office and formed the government in early March of 2006. Consequently, the Palestinian government suffered serious economic set-backs and became unable to pay salaries of nearly 165 thousand state employees. The employees received irregular partial payments and went on strike for a few months, which paralyzed life in the Palestinian areas.