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Palestine Establishes Competition Authority to Boost Transparency and Combat Corruption

The Palestinian National Authority (PNA) has taken a significant step towards improving transparency and combating corruption by establishing a new competition authority. The move is expected to address long-standing concerns about opaque management of licensing and other services, as well as eliminate unnecessary market entry and trade restrictions.

Background

The establishment of the competition authority comes amid ongoing efforts to reform the petroleum sector, which has been plagued by corruption in the past. According to a recent World Bank report, the Petroleum Commission, which was established in 1994 as the monopoly supplier of petroleum products in the West Bank, had operated without a regulatory framework and was not subject to external audit or oversight.

Corruption in the Petroleum Sector

The report highlighted widespread practices of revenue diversion, non-transparent purchase agreements, and monopolistic pricing policies, which created incentives for smuggling and unofficial sale of petroleum products. The Palestinian Ministry of Finance (MoF) has since taken steps to address these governance challenges by incorporating the Petroleum Commission within its framework and consolidating all revenues under MoF control.

Ongoing Challenges

Despite progress made, experts have noted that significant weaknesses remain in the sector, including the lack of an effective accounting system and financial reports on accounts receivable. The Palestinian government has committed to establishing a clear governance framework for the sector and promoting transparency in procurement.

Land Management Practices

In addition to the petroleum sector, the new competition authority will also focus on improving land management practices, which have been criticized for being opaque and prone to corruption. The World Bank report noted that state land administration is plagued by discretionary allocation of land to influential figures, non-payment of fees to the Treasury, and lack of financial disclosure on state land transactions.

Commitment to Reform

To address these concerns, the Palestinian government has committed to developing a clear policy framework for land management and allocation, establishing a comprehensive land registry, strengthening institutional capacity, and improving access to information on state land management and allocation.

Anti-Corruption Efforts

The establishment of the competition authority is part of a broader effort to combat corruption in Palestine. The PNA has implemented several anti-corruption plans since 1997, including measures aimed at promoting principles of separation of powers, independence of the judiciary, and rule of law.

Quotes

“This is an important step forward for Palestine’s efforts to promote transparency and combat corruption,” said [Name], a leading expert on good governance in Palestine. “The new competition authority will help ensure that businesses operate fairly and that citizens have access to basic services.”

Implications

The establishment of the competition authority is expected to have far-reaching implications for Palestine’s economy and society, including increased investment, job creation, and improved living standards.

Sources:

  • World Bank (2011). Palestinian Authority: Public Expenditure Management and Financial Accountability.
  • AMAN (2009b). Corruption in the West Bank and Gaza Strip.
  • Palestinian National Authority. Land Reform Agenda.

Contact: [Name], [Email], [Phone]