[Gaza] Qatari aid delay leaves Hamas unable to pay salaries

Hamas rulers in the Gaza Strip have been unable to pay the salaries of 50,000 public sector workers. Officials have, in part, attributed this to the delay of a monthly payroll grant from Qatar, Reuters reports.

Qatar is a crucial aid donor to the impoverished Palestinian enclave. The current salary crisis has provoked an unusual amount of criticism on social media in Gaza, including from some of Hamas' own employees. 

A drop in tax revenue and a jump in spending have reportedly exacerbated the situation.

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

Hamas officials stated that 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 unclear.

Qatar’s International Media Office in Dohar did not immediately respond to Reuters’ request for comment.

Addressing the matter on Hamas Aqsa radio, Awni Al-Basha - the Hamas-appointed deputy minister - said, "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.

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

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

On July 16, Salama Marouf - chairman of the Hamas government media office - reportedly 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?" Mahmoud Al-Farra - an employee at the Hamas government media office - said. "This a big disappointment."

Some residents used social media to question whether the crisis was authentic.

"Where are the taxes they collect and the grants that enter Gaza go?" one posted on Facebook.

Source: Reuters

(Quotes via original reporting) 

Hamas rulers in the Gaza Strip have been unable to pay the salaries of 50,000 public sector workers. Officials have, in part, attributed this to the delay of a monthly payroll grant from Qatar, Reuters reports.

Qatar is a crucial aid donor to the impoverished Palestinian enclave. The current salary crisis has provoked an unusual amount of criticism on social media in Gaza, including from some of Hamas' own employees. 

A drop in tax revenue and a jump in spending have reportedly exacerbated the situation.

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

Hamas officials stated that 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 unclear.

Qatar’s International Media Office in Dohar did not immediately respond to Reuters’ request for comment.

Addressing the matter on Hamas Aqsa radio, Awni Al-Basha - the Hamas-appointed deputy minister - said, "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.

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

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

On July 16, Salama Marouf - chairman of the Hamas government media office - reportedly 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?" Mahmoud Al-Farra - an employee at the Hamas government media office - said. "This a big disappointment."

Some residents used social media to question whether the crisis was authentic.

"Where are the taxes they collect and the grants that enter Gaza go?" one posted on Facebook.

Source: Reuters

(Quotes via original reporting)