Identifier
Created
Classification
Origin
07JERUSALEM2546
2007-12-12 16:32:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
PALESTINE MONETARY AUTHORITY TAKES CONTROL OF
how-toVZCZCXRO0082 OO RUEHROV DE RUEHJM #2546 3461632 ZNY CCCCC ZZH O 121632Z DEC 07 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 9995 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L JERUSALEM 002546
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR
SHAMPAINE/BELGRADE/STEINGER; NSC FOR ABRAMS/PASCUAL;
TREASURY FOR SZUBIN/GRANT/HARRIS/NUGENT/HIRSON
E.O. 12958: DECL: 12/12/17
TAGS: ECON EFIN KFTN KWBG IS
SUBJECT: PALESTINE MONETARY AUTHORITY TAKES CONTROL OF
PALESTINE ISLAMIC BANK
REF: JERUSALEM 2206
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).
C O N F I D E N T I A L JERUSALEM 002546
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR
SHAMPAINE/BELGRADE/STEINGER; NSC FOR ABRAMS/PASCUAL;
TREASURY FOR SZUBIN/GRANT/HARRIS/NUGENT/HIRSON
E.O. 12958: DECL: 12/12/17
TAGS: ECON EFIN KFTN KWBG IS
SUBJECT: PALESTINE MONETARY AUTHORITY TAKES CONTROL OF
PALESTINE ISLAMIC BANK
REF: JERUSALEM 2206
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).
1. (C) Palestine Monetary Authority (PMA) Acting Governor
Jihad al-Wazir told Econoff December 4 that the PMA has taken
control of the Palestine Islamic Bank (PIB). (Note: PIB has
long been under scrutiny for reported ties to Hamas. End
note.) Al-Wazir said he will serve as PIB's chairman for the
next six months and has already dismissed the bank's board of
directors and fired its general manager. The formation of a
new board will "take the sheikhs out" of bank management,
according to al-Wazir.
2. (C) Al-Wazir noted that a PMA team is now in place at
PIB's headquarters in Gaza reviewing all aspects of the
bank's operations. Initial reports indicate poor accounting,
a disregard for standard banking procedures, inadequate
equipment and software, and general mismanagement of funds.
Al-Wazir estimates PIB assets at USD 10 million, but claims
there are no means to evaluate accurately the bank's
profitability. He alleged that the former board members and
general manager were all involved in extending inappropriate
loans. He described the PIB as "a mismanaged trust fund." He
expects the reorganization of the bank to be completed by
March 2008, before which he will send a report to President
Abbas on the PMA's findings.
WALLES
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR
SHAMPAINE/BELGRADE/STEINGER; NSC FOR ABRAMS/PASCUAL;
TREASURY FOR SZUBIN/GRANT/HARRIS/NUGENT/HIRSON
E.O. 12958: DECL: 12/12/17
TAGS: ECON EFIN KFTN KWBG IS
SUBJECT: PALESTINE MONETARY AUTHORITY TAKES CONTROL OF
PALESTINE ISLAMIC BANK
REF: JERUSALEM 2206
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).
1. (C) Palestine Monetary Authority (PMA) Acting Governor
Jihad al-Wazir told Econoff December 4 that the PMA has taken
control of the Palestine Islamic Bank (PIB). (Note: PIB has
long been under scrutiny for reported ties to Hamas. End
note.) Al-Wazir said he will serve as PIB's chairman for the
next six months and has already dismissed the bank's board of
directors and fired its general manager. The formation of a
new board will "take the sheikhs out" of bank management,
according to al-Wazir.
2. (C) Al-Wazir noted that a PMA team is now in place at
PIB's headquarters in Gaza reviewing all aspects of the
bank's operations. Initial reports indicate poor accounting,
a disregard for standard banking procedures, inadequate
equipment and software, and general mismanagement of funds.
Al-Wazir estimates PIB assets at USD 10 million, but claims
there are no means to evaluate accurately the bank's
profitability. He alleged that the former board members and
general manager were all involved in extending inappropriate
loans. He described the PIB as "a mismanaged trust fund." He
expects the reorganization of the bank to be completed by
March 2008, before which he will send a report to President
Abbas on the PMA's findings.
WALLES