Hamas brings 4.5 million euros into Gaza-EU official

GAZA, June 10 (Reuters) A Hamas official openly brought 4.5 million euros into the Gaza Strip through its border with Egypt today, said a spokesman for a European Union contingent that monitors the crossing point.

International donors and Israel have frozen funds to the Palestinian Authority since it came under Hamas control after the Islamic militant group won election in January.

The sanctions have left the government cash-starved and most of the Authority's 165,000 employees unpaid since March. Palestinian banks, fearing US sanctions, have refused to handle Authority funds.

Carrying cash that Hamas said came from ''donations from ordinary Muslims,'' three Hamas legislators declared the 4.5 million euros (5.70 million dollars) at the Rafah crossing, which is controlled by Palestinian guards loyal to President Mahmoud Abbas of Fatah.

Among the lawmakers was Salah al-Bardaweel, spokesman of Hamas parliament bloc.

''He declared the money, according to regulations, saying where the money came from and where it is going to be used,'' Julio De La Guardia said.

''He was let through with the knowledge of the Palestinian president's office. The whole thing was dealt with by the presidential guard,'' he said.

Bardaweel said he and the two other lawmakers ''were proud we were able to share in the effort of the government to alleviate the suffering of our Palestinian people''.

Last month, Hamas spokesman Sami Abu Zuhri was caught at Rafah trying to smuggle 804,000 dollars into the Gaza Strip. The money was confiscated by the presidential guard but later handed over to the Hamas-led government.

REUTERS SI BD1905