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			 As the biggest aid donor to the Palestinian territories, EU 
			taxpayers pay a fifth of the salaries of teachers, doctors and 
			bureaucrats in the small coastal territory, which has been governed 
			by the Islamist group Hamas since 2007. 
 			But following an investigation into how EU aid is being spent, the 
			European Court of Auditors has found that large numbers of 
			recipients are providing no public service.
 			The court did not have overall figures on the size of the problem. 
			But in one spot check, 90 of the 125 employees at the National Audit 
			Institute of Palestine said they did not work.
 			In another sample, 40 percent of civil servants were not working, EU 
			auditor Hans Gustaf Wessberg, who led the inspections over the past 
			16 months, told a news conference.
 			"Our suggestion is to discontinue the program for employees in 
			Gaza," said Wessberg, saying the money could go to the West Bank 
			instead. "The payment of civil servants who do not work does not 
			meet one of (the EU's) main objectives to provide public services to 
			the Palestinian people." 			
			
			 
 			Wessberg denied EU money was going to former prisoners or militants 
			and blamed the problem on the split in the Palestinian Authority 
			between Hamas in Gaza and Palestinian President Mahmoud Abbas's 
			Fatah party in the West Bank.
 			The auditors looked into around 1 billion euros ($1.38 billion) of 
			spending in the Palestinian territories between 2008-2012.
 			Auditors could not establish what had happened to 90 million euros 
			that was meant to pay fuel taxes and keep Gaza's only power plant 
			running. Fuel shortages mean it has now ceased to serve nearly half 
			the 1.8 million population.
 			
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			Israel's on-off blockade of Gaza and Egypt's closure of around 1,200 
			tunnels that once linked the territory to the Sinai peninsula have 
			choked off a large amount of economic activity.
 			The auditors' report raises questions about the oversight exercised 
			by the European Commission, the EU executive, which is responsible 
			for overseeing EU aid programs.
 			But a Commission spokesman said many people were prevented from 
			going to work in Gaza, referring to the fragile security situation 
			in the strip, and needed financial support.
 			"If the Palestinian Authority is not paying these people, who is 
			going to provide for them? If you have people running around without 
			income, then of course, they are more prone to be taken by 
			extremists," said Commission spokesman Peter Stano.
 			The report follows an EU audit published in June that found that a 1 
			billion euro package of support for Egypt from 2007 to 2013 had been 
			mismanaged.
 			Over the past two decades, the EU has given 5.6 billion euros to the 
			Palestinian territories. ($1 = 0.7261 euros)
 			(Reporting by Robin Emmott; editing by Luke Baker and Alistair Lyon) 
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