Hamas could be facing cash crunch; unable to pay January salaries
GAZA Feb 8, 2010 Hamas has failed to pay the January salaries of many of the 34,000 Palestinian civil servants and security men in the Gaza Strip.
A senior official at the Hamas-run Finance Ministry blamed the delay on new "technical procedures". Under this, salaries are sent through post offices and the newly established Palestinian Islamic National Bank
"We have divided the employees into categories depending on their salaries. We began paying those with small salaries and I hope by end of this week all the other employees will be paid," he said.
Hamas usually settles its $16 million payroll at the beginning of each month. A new metal barrier built by neighboring Egypt to cut off cross-border smuggling tunnels could have caused a cash crunch.
A Palestinian Authority official has said Hamas uses tunnels to bring in money to pay employees. Hamas has said only that it has used means "above ground and underground" to import cash.
The United States and Israel have led a world blockade against Hamas since it defeated Palestinian President Mahmoud Abbas's Fatah movement in a 2006 election. Israel tightened the blockade in 2007 when Hamas security forces took over theGaza strip territory, ousting forces loyal to Abbas.
Israel and Palestinian officials loyal to Abbas have said the Hamas government receives Iranian funding apart from tax revenues and other foreign donations.