US threatens Gaza aid cutoff after Hamas crackdown

Jerusalam - 13 August 2011 (AP): The US will cut $100 million in American aid money to Palestinians inGazaif the territory'sHamasrulers continue with "unwarranted audits" of local American nonprofit organisations, a state department official said on Saturday.

The American threat came in response to a growing attempt by Hamas to exert control over the international organisations that support the many impoverished Palestinians among Gaza's population of 1.5 million people.

This week, Hamas shut down the US-financedInternational Medical Corpsafter it refused to submit to a Hamas audit.

The State Department informed Hamas yesterday that aid worth $100 million would be halted if the International Medical Corps were not allowed to operate freely.

"If they are not allowed to reopen and operate then obviously we are looking at USAID to suspend all operations until the IMC is allowed to reopen," said a state department official inWashington, who spoke on condition of anonymity because of the sensitivity of the matter. "These are unwarranted audits and amount to an increase in harassment of humanitarian relief staff."

The US, which considers Hamas a terrorist organisation, does not have direct contact with the group.

Hamas has told nonprofit groups that they must be registered with the Gaza government and provide financial records.

Mohammed Awad, the Hamas minister of planning in Gaza, said the organizations had agreed to have their accounts vetted through a Hamas-appointed accountant.