Free Republic

Palestinian finance minister Salam Fayad has threatened to resign in a dispute with veteran leader Yasser Arafat over reforms to the security budget, official sources said Sunday. Mr Fayad, a former official in the World Bank and International Monetary Fund, told Mr Arafat several days ago that he would resign unless the budget was administered more transparently. Palestinian security forces continue to be largely paid by cash despite efforts by Mr Fayad to ensure that their salaries are administered through banks and with proper accounting procedures. "It is a conflict over how to run and administer the budget of the...