Ramallah - Acting Palestinian Prime Minister Salam Fayyad strongly criticized Israel Tuesday, saying Israel has blocked cash transfers into the Gaza Strip, meaning thousands of public employees will not be able to get their salaries on Wednesday. Fayyad said in a press conference at his Ramallah office that the ban on cash transfers is part of a blockade imposed by Israel on the Gaza Strip three weeks ago. Israel imposed the blockade after militants in the Gaza Strip began shooting rockets into Israel. That was, in turn, a response to an Israeli army incursion into the strip.
"This situation has to do with an Israel government decision not to allow funds into the Gaza Strip," said Fayyad. "It is part of the Israeli measures to step up the siege it has imposed on the Gaza Strip over the past three weeks."
He said Palestinian banks in the Gaza Strip are down to 47 million Israeli shekels (11.75 million US dollars), not enough to pay salaries estimated at 100 million shekels a month. He said Gaza banks need at least 250 million Israeli shekels a month to stay afloat.
The United Nations has also noted that the blockade has prevented it from getting cash assistance into the Gaza Strip. According to a UN report, that means 94,000 people are without regular cash assistance.
The UN Relief and Works Agency for Palestine Refugees also noted that it has not been able to send money for school feeding programs, which require 200,000 shekels a day to feed 200,000 children.
Many schools are operating on credit with vendors, but are sounding alarm bells that they will be forced to stop shortly if they do not receive cash.
The Israeli government has not commented on the banking situation.
Fayyad added that Palestinians are getting ready to observe the four- day Eid al-Adha holiday, which starts Monday. "People need money for the holiday and the government wanted to pay salaries before the holiday," he said.
Fayyad, who is also finance minister, said his ministry will transfer salaries for its 150,000 public employees to banks in the West Bank and Gaza Strip on Wednesday and hope that Israel will allow the funds to reach the Gaza banks.
