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Hamas Short on Cash as Gaza Blockade Takes Toll

(AP) Karin Laub and Rizek Abdel Jawad - Hamas confirmed Sunday it is unable to pay thousands of government workers in full for a second straight month - a new sign of the most serious cash crunch in its three years of ruling Gaza. Hamas has resorted to an unpopular tax drive to raise money, suggesting that a blockade, an Egyptian crackdown on smuggling, and an increasingly expensive government bureaucracy are taking their toll. Gaza analyst Mukheimar Abu Sada said Hamas' willingness to impose taxes, at the risk of eroding support, suggests the Islamists need cash badly. The Gaza City municipality, which provides services to 600,000 residents, is now demanding taxes from businesses and households, after Hamas stopped paying half of the municipal budget six months ago. Nasser Franji, 47, who is being asked to pay tax on his tiny car repair shop, said Hamas has done well in ending chaos in the streets, but has failed in providing for Gaza's citizens. "There is security, but there is no food," he said.
2010-05-04 08:49:49
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