Anger as Palestinian Authority cuts Gaza salaries and pays late

Public servants of the Palestinian Authority queue to receive their salaries outside a bank in Gaza City May 3, 2018. REUTERS/Mohammed Salem

By Nidal al-Mughrabi

GAZA (Reuters) – The Palestinian Authority cut salaries for its staff in Gaza by 20 percent on Thursday and failed to make up for skipping the previous month’s pay, leaving civil servants in the impoverished territory fuming they were pawns in a factional power struggle.

Some 38,000 civil servants in the Gaza Strip learned of the new disruptions to their incomes upon arriving at their banks on payday, intent on withdrawing cash ahead of the Muslim holy month of Ramadan, which begins on May 16.

Last month, they were not paid at all. Many were hoping for two months pay this month, but instead received a reduced rate of a single month’s pay, with no explanation.

PA salaries in the other Palestinian territory, the Israeli-occupied West Bank, were paid in full.

Islamist group Hamas seized control of Gaza from Palestinian President Mahmoud Abbas in 2007, prompting Israel and Egypt to clamp down on the territory, where 2 million people live under a de facto blockade with the world’s highest unemployment rate.

In an Egyptian-mediated bid to end the rift and reunite the two Palestinian territories, Hamas said last year it would cede the territory’s control to Abbas’s authority. But many Gazans still feel like they are being used as pawns in a power-struggle between the two groups.

“If they’ve failed to resolve this issue through dialogue, it can’t be resolved by (using) the poor employee,” said Eyad Kalloub, a 40-year-old civil servant, as he queued at his bank.

The Gaza wage cuts were the second round in as many years imposed by the Palestinian Authority, which still administers the payroll for civil servants in the territory run by Hamas.

In April 2017, Abbas slashed Gaza salaries by 30 percent. He has also slashed PA staff numbers in Gaza from 60,000 last year, by ordering early retirement for nearly a third of employees.

Palestinian Authority officials said at time that those moves were meant to pressure Hamas to relinquish Gaza control. However, last month they blamed the latest hold-up in wages on technical problems.

Economists said the PA cuts would shrink the tax revenue collected in Gaza by Hamas – which it uses to pay 40,000 employees it has hired in the enclave since 2007.

That exacerbates Hamas budgetary shortfalls caused by Egypt’s closure of smuggling tunnels from its Sinai peninsula to Gaza. The Islamist faction had collected tax on goods brought in through the tunnels.

More than half of Gazans depend on international aid, and 43.6 percent of workers are unemployed, the highest rate in the world. Basic utilities such as water purification and power have deteriorated.

Israel, which has fought three wars in Gaza in the decade since Hamas took over, bars a range of goods that it says could have military uses from entering the territory, making reconstruction difficult and costly.

Jamal Abu Gholy, 38, a civil servant, came to his Gaza bank hoping to draw on his April salary, only to learn that it had not been deposited. Instead, he owed the bank for an overdraft.

“What shall I do about Ramadan?” he asked, thinking of the festive meals which Muslims break their daily fasting over the course of the month. “I can’t just put out cheese and jam. We tell President Abbas: please show mercy towards us.”

(Editing by Peter Graff)

Malaysia further downgrading ties with North Korea a year after airport assassination

Vietnamese Doan Thi Huong, who is on trial for the killing of Kim Jong Nam, the estranged half-brother of North Korea's leader, is escorted as she arrives at the Shah Alam High Court on the outskirts of Kuala Lumpur, Malaysia January 22, 2018. REUTERS/Lai Seng Sin

By Rozanna Latiff and A. Ananthalakshmi

KUALA LUMPUR (Reuters) – One year after North Korean leader Kim Jong Un’s half-brother was assassinated at Kuala Lumpur’s airport, Malaysia is further downgrading once-close ties with Pyongyang, sources familiar with the government’s plans said.

Kim Jong Nam was assassinated on Feb. 13, 2017 when two women smeared his face with VX nerve agent – which the U.N. lists as a weapon of mass destruction. The women claim they were tricked into believing they were part of a reality show, but U.S. and South Korea say the murder was orchestrated by Pyongyang.

The brazen killing came as North Korea was starting to accelerate its missile tests and countries around the world came under mounting pressure to enforce ever-tightening U.N. sanctions against Pyongyang.

The repercussions from the killing are still being felt.

Malaysia is considering reducing the staff size of the North Korean mission in Kuala Lumpur to four by not renewing requests to replace diplomats when their terms end, according to a diplomatic source and an advisor to the government. Both declined to be named due to the sensitivity of the matter.

Malaysia is also turning down invitations to participate in North Korean events. A diplomatic source with direct knowledge of the situation said Malaysia declined an invitation to send an envoy to attend last week’s military parade in Pyongyang.

“It’s just too dangerous,” the source told Reuters, referring to the Malaysian diplomats North Korea stopped from leaving the country last year.

The Malaysian foreign ministry declined to comment.

Meanwhile, trade and business ties have all but dried up.

A Malaysian businessman, who until recently imported coal from North Korea, said he stopped buying from Pyongyang – even before U.N. sanctions that banned all trade of North Korean coal – because the purchases were drawing a lot of attention after the Kim Jong Nam killing.

TRAVEL BAN

Ties quickly deteriorated after North Korea’s ambassador to Malaysia questioned the credibility of the police investigation into the assassination, insisting Kim Jong Nam was an ordinary citizen who had died of a heart attack.

Malaysia recalled its ambassador to North Korea, banned its citizens from traveling to the North and canceled visa-free entry for North Koreans.

North Korea retaliated with a travel ban on all Malaysians in Pyongyang, trapping three diplomats and six family members. They were able to fly out only after Malaysia agreed to hand over Kim Jong Nam’s corpse and send three North Koreans wanted for questioning back to North Korea.

Pressure from the United States has been mounting on Malaysia and other Southeast Asian countries to cut trade and diplomatic ties with Pyongyang, as President Donald Trump seeks support for tougher action against nuclear-armed North Korea.

Malaysia said last year it was considering permanently closing its embassy in Pyongyang and moving North Korea services to its Beijing mission. It has not been staffed since last April after its diplomats were allowed to leave under the swap agreement.

The cabinet has yet to make a decision on closing the embassy.

“There’s no turning back the clock on relations with North Korea, not after the Kim Jong Nam incident and the near impossibility of having any positive relationship with the country under such severe sanctions,” said Shahriman Lockman, a senior analyst with the Institute of Strategic and International Studies.

“I think the sense is that North Korea took advantage of Malaysia’s goodwill and relative openness,” he said.

TRADE HALTED

North Korea benefited from its Malaysian ties — Pyongyang exported everything from coal and medical devices to crabs, cloth hangers and fire extinguishers to Malaysia. Imports, however, came to a grinding halt last year.

Malaysia was also host to hundreds of North Korean workers, who were sent back after the airport killing.

A Reuters report showed how North Korea’s spy agency, the Reconnaissance Bureau, was running an arms operation out of Kuala Lumpur.

The frayed ties have affected Malaysian businesses that used to trade with the isolated country.

“We have been doing business with North Korea for 10 years,” said the Malaysian coal trader who declined to be identified.

“Suddenly it became a big issue because of the murder,” said the trader, adding he was questioned by the police and the foreign ministry over a March purchase.

It’s a sharp contrast from 10 years ago when it was easy for Malaysian businessmen to engage with Pyongyang, he said.

“I met the (North Korean) trade attaché and he arranged a shipment for me. That’s how I started,” he said.

The rocky relationship also remains in the spotlight with the continuing trial of the two women, Indonesian Siti Aisyah and Doan Thi Huong from Vietnam, in a Kuala Lumpur court on charges of murdering Kim Jong Nam.

The prosecution has built its case on airport video recordings of the killing and VX residue found on the women.

Defense lawyers say the prosecution has not put forward a motive for the killing and argue the two women were merely unwitting pawns in the attack.

The prosecution is not expected to finish presenting evidence until next month.

The women face the death penalty if convicted.

(Reporting by Rozanna Latiff and A. Ananthalakshmi; Editing by Bill Tarrant)