Malaysia pledges 16 million dollars to Palestine

SHARM EL-SHEIKH, Egypt, May 21 : Malaysia pledged 16 million dollars today in humanitarian aid and budget support to the Palestinian Authority to compensate for the loss of US and European assistance.

But in practice the Malaysian pledge, like previous contributions from Arab states, will not reach the Palestinians until the United States lifts the threat of sanctions against banks which transfer the funds to the West Bank or Gaza.

Malaysian Prime Minister Abdullah Ahmad Badawi made the pledge at a news conference on the sidelines of a World Economic Forum meeting in Egypt.

''We have decided we should be able to support their budget needs for the remaining months of this year -- as for the figure, at the moment it's around 16 million dollars,'' he said.

The Palestinian Authority lost most of its direct funding after the Islamist group Hamas won parliamentary elections and formed a new cabinet.

Hamas has refused to meet US, Israeli and European demands that it recognise Israel, renounce violence and accept old agreements with the Israelis.

Friends of the Palestinians have offered to make up the difference but the United States has thwarted their attempts to transfer the money to the Palestinians.

Abdullah said: ''There is a dire need for some financial support for the administration... (One priority) is making sure bureaucracy works. If that isn't the case you cannot provide the services people need,'' he added.

A Malaysian delegation will go to the Palestinian territories to work out the details and his government hopes the payment will go ahead as soon as possible, he said.

The international Quartet of mediators is working on an emergency mechanism for financial support for some of the current functions of the Palestinian Authority but it could take some time to agree on the details.

The Malaysian prime minister did not say how Malaysia intended to try to channel its own contribution.

Reuters