The move has come at a time when Mr Arafat is under intense pressure from the Israeli government following the suicide bomb attack in Jerusalem. The corruption allegations came in a report by the Palestine Legislative Council which claims a significant portion of the Palestinian Authority's $800m (pounds 500m) annual budget has been squandered. The report urged Mr Arafat to dissolve his cabinet and appoint new members. Kim Sengupta
Sixteen out of 18 members of the Palestinian cabinet offered their resignation to Yasser Arafat following allegations of widespread corruption.