TEACHERS RECEIVE BALANCE OF NOVEMBER SALARIES;

C O N F I D E N T I A L JERUSALEM 004844 SIPDIS SENSITIVE SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/STEINGER; NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR NUGENT/HIRSON; BRUSSELS FOR LERNER; PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN E.O. 12958: DECL: 11/24/16 TAGS: EFIN ELAB PGOV KWBG SUBJECT: TEACHERS RECEIVE BALANCE OF NOVEMBER SALARIES; SECURITY SERVICES RECEIVE NIS 1000 ALLOWANCE REF: JERUSALEM 4787 CLASSIFIED BY: DEPUTY PRINCIPAL OFFICER THOMAS DUFFY, REASONS 1.4 (B) A ND (D) ¶1. (C) PA PRESIDENCY ECONOMIC ADVISOR MOHAMMED MUSTAFA CONFIRMED TO ECONCHIEF NOVEMBER 22 THAT THE PRESIDENCY WAS PAYING THE BALANCE OF PA TEACHERS NOVEMBER SALARIES THROUGH BANKS OUT OF FUNDS THE PRESIDENCY HAD RECEIVED FROM THE STATE OF KUWAIT. ARAB BANK, BANK OF PALESTINE, AND BANK OF JORDAN REPRESENTATIVES ALL CONFIRMED NOVEMBER 22 THAT THEY HAD STARTED PAYING TEACHERS THAT DAY. ACCORDING TO THE AGREEMENT ENDING THE STRIKE, TEACHERS WERE PAID THROUGH POST OFFICES A FLAT RATE PAYMENT OF NIS 1000 FROM THE PA FINANCE MINISTRY ON NOVEMBER 11 (REFTEL) SO THAT SCHOOLS COULD OPEN AND WERE DUE TO BE PAID BY THE PA GOVERNMENT THE BALANCE OF THEIR SALARIES ON NOVEMBER 20. SINCE THE PA FINANCE MINISTRY DID NOT HAVE THE AVAILABLE FUNDS TO PAY THE BALANCE OF SALARIES, THE PA PRESIDENCY STEPPED IN. ¶2. (C) PA PRESIDENCY STAFF MEMBER KHALED ZEIDAN CONFIRMED TO ECONCHIEF NOVEMBER 24 THAT THE PRESIDENCY HAD PAID SECURITY PERSONNEL, BOTH CURRENT EMPLOYEES AND PENSIONERS, A FLAT RATE ALLOWANCE OF NIS 1000 (USD 232),ALSO FROM THE KUWAITI TRANSFER, BEGINNING NOVEMBER 23. ACCORDING TO PALESTINIAN TELEVISION, SOME SECURITY FORCE PERSONNEL IN GAZA PROTESTED THE COMMERCIAL BANKS' DECISION TO DEDUCT 20 PERCENT FROM THE ALLOWANCES OF THOSE WITH OUTSTANDING LOANS FROM THE COMMERCIAL BANKS. (NOTE: SINCE SEPTEMBER, COMMERCIAL BANKS HAVE DEDUCTED 20 PERCENT FROM ALL ALLOWANCE PAYMENTS, REGARDLESS OF THE SOURCE, IF THE INDIVIDUAL HAS AN OUTSTANDING LOAN FROM THE BANK. END NOTE.) CONGEN FSNI CONFIRMED THAT OFFICIAL PA SECURITY SERVICE EMPLOYEES, INCLUDING FROM PREVENTIVE SECURITY, THE PRESIDENTIAL GUARD, THE NATIONAL SECURITY FORCES, AND THE POLICE, WERE PAID, AND THAT THE HAMAS EXECUTIVE FORCE HAD NOT BEEN PAID. ¶3. (C) ZEIDAN SAID THAT THE KUWAIT TRANSFER OF 23 MILLION EUROS (USD 29.8 MILLION) TO THE PRESIDENCY WAS EXHAUSTED BY THESE PAYMENTS FOR TEACHERS (NIS 55.380 M/USD 12.84 M) AND FOR SECURITY SERVICES MEMBERS (NIS 79 M/USD 18.3 M). (COMMENT: OUR CALCULATIONS INDICATE THAT THEY WOULD HAVE NEEDED TO USE USD 1.3 MILLION FROM ANOTHER SOURCE. END COMMENT.) WALLES