PA PRESIDENCY PAYS PA SALARIES

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000222

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/DORAN/WATERS;
TREASURY FOR NUGENT/HIRSON/LOEFFLER/HARRIS; BRUSSELS FOR
LERNER; PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN

E.O. 12958: DECL: 01/29/2016
TAGS: EFIN ELAB PGOV KWBG QA IS AE
SUBJECT: PA PRESIDENCY PAYS PA SALARIES

REF: JERUSALEM 76

Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d)


1. (C) Summary: The PA Presidency disbursed salary payments
to PA security and civil service members, except health and
education employees, beginning January 28. This marks the
first time that the Presidency has made salary payments on
behalf of the PA government. The PA government disbursed
allowances this week to martyrs and detainees' families and
the injured. The Temporary International Mechanism plans to
disburse another NIS 1500 payment to low income cases (PA
employees earning less than NIS 2500 per month) beginning
February 2. End summary.

Presidency pays salaries to
PA security & civil service
--------------


2. (C) Presidency Chief of Staff Husseini confirmed that all
civil servants who had not received a payment from the PA
government in December, i.e. all except Health and Education
Ministry employees, had been paid by the PA Presidency
January 28 the equivalent of a month's salary, for a total of
USD 20 million. Salam Fayyad told EconChief January 30 that
security service members had also been paid by the
Presidency, starting January 28, a 50 percent salary
allowance that totaled USD 21.5 M. He said another payment
would be made to them in February. (Comment: This is the
first time since April 2006 that the PA Presidency has paid
actual monthly salaries to PA employees. End comment.)
Bassem Zakarneh, the head of the Union of Public Employees,
publicly noted that the next payment should be made on
February 25.


3. (C) Husseini told EconChief January 31 that the funds for
the security and civil service salary payments came from
several different sources, including USD 30 million from the
United Arab Emirates and USD 22.5 million from Qatar.
Husseini also said USD 5 million in domestic revenues was
transferred from the PA government's collection account at
the Bank of Palestine to the PA Presidency's account there.
(Note: This is the first such transfer of which we are aware.
Husseini told EconChief that the Presidency had insisted
that the PA government contribute some of its funds for
salary payments. End note.)


4. (SBU) In comments to the press January 27, Husseini said
security service members had only received 40 percent of
their salaries over the last nine months, as compared to many
civil servants who had received 61 percent. He also noted
that PA civil servants earning over NIS 2500 had only
received 25 percent of their total salaries during that same
time period. He said the Presidency was paying salaries, the
responsibility of the PA government, because of the
strike-ending agreement (reftel) and in order to help
ordinary Palestinians meet their daily needs. He stated that
funds sent to the Presidency by foreign governments were
being spent in coordination with the PA Finance Ministry and
that there would be external audits of these transactions.
Separately, the PA government announced this week that it was
disbursing an NIS 600 allowance to martyrs and detainees'
families and the injured.

Other planned Presidency disbursements
--------------


5. (SBU) According to the Arabic-language WAFA report,
Husseini said that the Presidency would make the following
additional payments, totaling USD 74 million:
-- USD 4 million to the PA retirement fund;
-- USD 4 million to municipalities;
-- USD 7 million to the Palestinian National Fund to cover
PLO missions abroad and in Lebanon;
-- USD 4.5 million for rent and salaries for PLO missions
abroad; (Note: It is not clear how this payment would differ
from the previous one. End note)
-- USD 1.5 million to families of (PLO) martyrs overseas;
-- USD 45 million to private sector vendors, especially
health, education, insurance, and civilian and security
service suppliers;
-- USD 4 million to national institutions like the
Palestinian Red Crescent Society and Jerusalem institutions
(education, health, and culture); and
-- USD 4 million to the Presidency for suppliers. (Less than

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30 percent of the Office of the President's normal annual
operating budget, according to Husseini.)

TIM allowances
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6. (C) The new head of the European Commission Management
Unit for the Temporary International Mechanism (TIM) Mario
Mariani told EconChief January 30 that another TIM allowance
disbursement through commercial banks directly to low income
cases (LICs),essentially all PA civil servants earning less
than NIS 2500 per month, would begin February 2. He noted
there had not been any TIM allowance payments to LICs in
January.
WALLES