PLO picks Morgan to run funds

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The Independent Online
THE PALESTINE Liberation Organisation has appointed Morgan Stanley Asset Management to manage all public and private donations made to the Palestine National Authority for the economic development and administration of the Gaza and West Bank territories, writes William Gleeson.

The appointment of Morgan, part of the US investment bank, follows concern expressed by the World Bank about possible obstacles to the proper disbursement of donations.

The World Bank is co-ordinating the expenditure of dollars 1.2bn ( pounds 800m) pledged by 40 donor countries.

The appointment is an attempt to allay fears that the money will not be used for its intended purpose.

The PLO said: 'Morgan Stanley have been selected to help assure contributing nations and agencies that funds . . . would be managed with total transparency in a highly skilled and professioanl manner by one of the world's pre- eminent banks.'