Arafat: "all necessary measures" to curb corruption

Arafat Vows to Challenge Corruption

Pressure on Mr Arafat to act has mounted after the report, presented to the Palestinian Legislative Council, outlined growing disenchantment with his administration throughout the West Bank and Gaza Strip.

Haider Abdel Shafi of the Palestinian Legislative Council criticises Yasser Arafat

Crucially, the report recommends putting two of the Palestinian Authority's leading figures on trial. Planning Minister Nabil Sha'ath, who has played a key role in negotiations with Israel, and Civilian Affairs Minister Jamil al-Tarifi are accused of corruption and misuse of power.

Mr Sha'ath dismissed the allegations as "lies". He said that the authors of the report wanted to "harm the Palestinian authority's image internationally." Mr al-Tarifi declared: "I categorically deny all the accusations and I will prove it with documents. I have nothing to hide."

The report also calls for investigations of other senior PLO figures suspected of mismanagement and squandering public funds. And it urges Mr Arafat to dissolve his current cabinet, replacing it with "a new cabinet made up of technocrats and qualified people."

No charges have been levelled against Mr Arafat. But he needs to act quickly, as the countries which have promised millions of dollars have set honest government as a condition for delivering the funds.