Summary

After the government of Israel and the Palestine Liberation Organization (PLO) signed a Declaration of Principles in September 1993, the United States agreed to help fund long-term development projects in the West Bank and Gaza Strip. GAO issued a classified report dealing with the PLO's finances. Specifically, GAO (1) assessed the PLO's ability to finance the operations of the Palestinian Authority--the organization established to implement self-rule, (2) ascertained whether the international donors effectively analyzed the need to help fund the Palestinian Authority's operating and start-up expenses, and (3) determined whether appropriate controls had been implemented to ensure that donor funds would be adequately accounted for. This testimony discusses the audit work supporting the classified report, the principal cooperation issues GAO confronted during this assignment, and GAO's efforts to have this report declassified in response to requests from Members of Congress.