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Viewing cable 09KUWAIT401, NON-PAPER DELIVERED: RESPONDING TO ALLEGATIONS OF

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Reference ID Created Released Classification Origin
09KUWAIT401 2009-04-26 08:46 2011-08-24 01:00 UNCLASSIFIED Embassy Kuwait
VZCZCXRO9163
RR RUEHROV
DE RUEHKU #0401 1160846
ZNR UUUUU ZZH
R 260846Z APR 09
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC 3230
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
UNCLAS KUWAIT 000401 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN PGOV KWBG IS KW
SUBJECT: NON-PAPER DELIVERED: RESPONDING TO ALLEGATIONS OF 
CORRUPTION IN PALESTINIAN AUTHORITY 
 
REF: A. SECSTATE 38607 
     B. KUWAIT 311 
     C. KUWAIT 230 
     D. KUWAIT 97 
     E. KUWAIT 22 
 
1. On April 22, Econoff delivered reftel nonpaper on 
financial accountability and transparency measures by the 
Palestinian Authority (PA) to Ahmed Baqer of the Ministry of 
Foreign Affairs Arab World Department and stressed the PA's 
need for budget assistance.  Baqer said that improvement on 
these issues by the PA was of interest to the GoK because it 
took great care to ensure that it could track how its 
financial assistance was disbursed. 
 
2. Baqer outlined current GoK Palestinian aid commitments 
which included USD 220 million remaining from a USD 300 
million Paris Donors Conference pledge in December 2007, USD 
34 million UNRWA pledge from the January 2009 Arab Economic 
Summit in Kuwait and USD 200 million from the March 2009 
Sharm Al-Sheikh donors conference.  He explained that funds 
from the Sharm Al-Sheikh pledge or from the Paris pledge 
could theoretically be utilized for budget support.  Baqer 
said that the Paris pledge had been divided into three 
elements: USD 80 million to be distributed by the Arab Fund 
for Economic and Social Development, USD 90 million to be 
administered by the Islamic Bank Development, and USD 50 
million which the GoK is reserving for urgent requests. 
 
3. Baqer said that the GoK had provided USD 196 million in 
budget support from 2002 until 2007 under 2002 Beirut Summit 
commitments.  When asked by econoff to confirm that 2007 was 
the end of this commitment, Baqer declined to discuss why no 
payments had been made since 2007.  Baqer said that the 
matter would be conveyed to the Council of Ministers for 
their consideration.  (Note: Senior Kuwaiti officials have 
recently reiterated their preference for project-based 
assistance to the Palestinians rather than direct financial 
support. End note.) 
 
********************************************* ********* 
For more reporting from Embassy Kuwait, visit: 
visit Kuwait's Classified Website at: 
 
http://www.intelink.sgov.gov/wiki/Portal:Kuwa it 
********************************************* ********* 
JONES