Arafat is looking increasingly beleaguered

Pressure Grows on Arafat as Cabinet Members Resign Over Corruption

The announcement has dramatically increased the pressure on Mr Arafat. The Palestinian leader is already facing tough demands from Israel to crack down on Islamist militants in the wake of Wednesday's attack on a Jerusalem market by two suicide bombers, in which thirteen people were killed and more than 150 wounded.

The Palestinian Cabinet in session

Mr Arafat -- back in Gaza after talks in Egypt with President Hosni Mubarak -- said he had not yet decided what to do about the resignations. Earlier in Alexandria, Mr Arafat angrily accused Israel of trying "to wage a war" against the Palestinians.

The resignations were presented to Mr Arafat at the weekly Cabinet meeting on Friday. Two ministers who did not resign, Planning Minister Nabil Sha'ath and Information Minister Yasser Abed Rabbo, were not present at the meeting.

Mr Abed Rabbo claimed that the resignations had been submitted in the expectation that Mr Arafat would refuse them, allowing the ministers to remain in power. "What is needed is a complete overhaul of the Authority's structure," he added.

The report recommends putting Qawasmeh on trial

On Thursday, the Palestinian Legislative Council demanded that Mr Arafat dissolve the cabinet and replace it with "technocrats and qualified people". The Council's decision was based on the corruption report, which claimed that almost half the Authority's annual budget of $800 million had been squandered through mismanagement and corruption.

The report also recommended putting Mr Sha'ath on trial, along with Civil Affairs Minister Jamil Tarifi and Transportation Minister Ali Qawasmeh.

Meanwhile, the American Envoy Dennis Ross is expected to return to the region after the traditional seven day mourning period in Israel ends. Mr Ross, who is trying to revive peace negotiations, had been due in Israel on Wednesday but cancelled his visit after the Jerusalem bombs.