NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Hamas unable to pay salaries in Gaza after Qatari aid delay, officials say

Published 07/16/2023, 11:06 AM
Updated 07/16/2023, 01:01 PM
© Reuters. A general view of Gaza City, July 16, 2023. REUTERS/Mohammed Salem
META
-

By Nidal al-Mughrabi

GAZA (Reuters) - The Gaza Strip's Hamas rulers have been unable to pay salaries for 50,000 public sector workers, with officials in part blaming a delay in a monthly payroll grant from Qatar, a crucial aid donor to the impoverished Palestinian enclave.

The salary crisis has sparked an unusual amount of criticism on social media in Gaza, including by some of Hamas' own employees. A drop in tax revenue and a jump in spending has made the situation even more difficult.

Most of Gaza's 2.3 million residents live in poverty, and the economy is dependent on foreign aid. Qatar has paid hundreds of millions of dollars since 2014 for construction projects. It currently pays $30 million per month in stipends for families, fuel for electricity, and to help pay public sector wages.

Hamas officials say no salary aid has been received since just over half of a $5-million grant to support the May payroll. The reason for the delay was not clear.

In Doha, Qatar’s International Media Office did not immediately respond to a request for comment.

"The government is going through a stifling and escalating financial crisis, with a continuous increase in the deficit month after month, which led to the delay of salaries this month," Awni Al-Basha, the Hamas-appointed deputy minister, told Hamas Aqsa radio.

"We are making significant efforts to pay the salaries, and we hope to do so at the end of this week," he said.

Monthly payroll costs Hamas 125 million shekels ($34.5 million) per month, said Basha.

On Sunday, Salama Marouf, chairman of the Hamas government media office, said there has also been an increase in spending, particularly for the ministry of health and repayment of bank debts. He called on Qatar to increase the salary grant to $7 million.

Gaza has been under an Israel-Egyptian blockade since 2007 when Hamas, which opposes peace with Israel, took control. Public sector employees have not received full salaries since 2013.

"With 60% (of salaries) we used to meet the basics of our needs at home. What happens when the salary is completely cut off?" said Mahmoud Al-Farra, an employee at the Hamas government media office. "This a big disappointment."

© Reuters. Palestinians employees work at Gaza government media office, in Gaza City, July 16, 2023. REUTERS/Mohammed Salem

Some took to social media, questioning whether the crisis was authentic.

"Where are the taxes they collect and the grants that enter Gaza go?" one resident posted on Facebook (NASDAQ:META).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.