E.U. officials say aid was vital to prevent a total collapse of civil society in Palestine.

BRUSSELS, May 7 (IslamOnline & News Agencies) – E.U. officials firmly denied Monday, May 6, Israeli allegations that millions of pounds of E.U. money have allegedly been diverted to fund Palestinian martyr operations in the Occupied Territories.

While promising to investigate the allegations, the European Commission insists its aid to the Palestinian Authority is for civilian projects only, and is subject to rigorous controls before cash is released, the British daily newspaper, The Independent, reported Tuesday, May 7.

Gunnar Wiegand, spokesman for Chris Patten, European Commissioner for external relations, said the Israeli allegations would be taken seriously and investigated "as soon as the government of Israel shares its documentary evidence with us – something that is not yet the case".

Wiegand also pointed out that the E.U. was not the only international organization under fire from Israel, which has even accused the U.S. Central Intelligence Agency of indirectly supporting terrorism by backing the Palestinian security services.

The sharp response from Brussels follows claims from the Israeli cabinet minister Dan Naveh that some €10m (more than £6m) in E.U. aid was allegedly "used indirectly to finance terrorist acts". The E.U. is the biggest donor to the Palestinian Authority and, during the past two years, has spent about €369m in budgetary support and humanitarian aid.

Brussels officials: Israeli allegations part of political strategy to persuade Bush that Arafat supports terrorism and should be excluded from Mideast peace talks

Before cash is released, the Commission says, E.U. auditors and experts from the International Monetary Fund have to give an assurance that a lengthy series of conditions has been met. "This takes place every month and we do not send money until we get the green light," the Independent quoted Wiegand as saying.

Despite their pledge to investigate, E.U. officials are convinced that their funds have not be misappropriated. The €10 million a month paid to the Palestinian finance ministry by the E.U. is monitored closely by the IMF, which has insisted on consolidation of accounts so that there is no spending outside the budget.

The IMF is represented in the Palestinian ministry of finance, checks incoming payments and requests for payments from other ministries and verifies these against agreed budget plans.

E.U. officials say they have seen no reason to believe that any cash is being diverted to military spending or to non-government structures, and that there is no room for diversion of their funds.

Officials in Brussels see the latest allegations as part of a political strategy to persuade U.S. President George W. Bush that Palestinian President Yasser Arafat is a supporter of terrorism and therefore should be excluded from Middle East peace talks.

Relations between Israel and the E.U. have deteriorated since Israeli Prime Minister Ariel Sharon's hard-line government started took action in the Occupied Territories, said the Independent. Even before the latest Israeli offensive there was tension, however, because Israeli forces had destroyed E.U.-funded projects in the West Bank and Gaza Strip costing millions of pounds.

Earlier this year, the E.U. sent a letter of complaint to the Israeli government, accusing it of being responsible for some €19 million in damage to Palestinian Authority projects.

Commission officials argue that the aid was vital to prevent a total collapse of civil society. By the end of 2001 the gross national income was less than 30 per cent of its 1994 level, and 40-50 per cent of the population of the Palestinian Territories was living below the poverty line of $2 day.

Israeli Operation Defensive Sheild Palestine: Maps and Facts At Least 16 Killed, 50 Injured in Bomb Attack Outside Tel Aviv EgyptAir Flight Went Down In Heavy Rains, Ambassador Exclusive: American Muslim Runs for U.S. Congress Israel Freezes Bethlehem Deal, Italy Refuses Receiving Deportees Egypt Says U.S. Made ‘Slip Of Tongue’ About Arafat Two Muslims killed in Nepal Army attack on mosque UN General Assembly Begins Emergency Session On Jenin U.N. War Crimes Prosecutor Tours Croatia Atrocity Sites U.S. Grants Bahrain, Kuwait Permission To Visit Detainees in Guantanamo Bay Bush Expands “Axis of Evil”, U.S. Body Calls for Sanctions Against Saudi Arabia  E.U. Confirms Aid to Palestine for Civilian Projects  U.N. Says Israeli Offensive on West Bank Cost $300m  Sharon Discussing Peace in Washington, Israeli Army Occupies Tulkarem After Le Pen’s Defeat, Dutch Far-right Leader Shot Dead Saudi’s Faisal Not Convinced on Mideast “Peace” Conference Jenin – Israel’s Latest War Crime After Killing More Jenin Civilians, Israeli Army ‘Sorry’ U.S.: Jenin Unanswered, Let’s Stress Humanitarian Aid Israel Has ‘Other’ Reasons Not To Cooperate With Jenin Mission, Ahtisaari U.S. Eyewitnesses Narrate Two Weeks In Ramallah, Jenin Jenin War Crimes Investigation Needed: Human Rights Watch Report Amnesty Finds Evidence Confirming Atrocities in Jenin & Elsewhere Faced With Israeli Refusal, Annan Mulls Disbanding Jenin Fact-finding Team Arab American Leaders Meet with Annan To Discuss U.N. Mission To Jenin Yesterday's News Search Articles      News Archive : Day: 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31     Month: 01 02 03 04 05 06 07 08 09 10 11 12   Year: 2006 2005 2004 2003 2002 2001 2000 1999