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
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Sixteen out of 18 members of the Palestinian cabinet offered their resignation to Yasser Arafat following allegations of widespread corruption.