No surprises in this story, just further confirmation that the Palestinian state (the state they already have, that they’ve been building for 60 years) is a completely corrupt disaster: Palestinian minister admits aid millions lost. (Hat tip: LGF readers.)

A former World Bank official who is about to become the Palestinian finance minister has warned foreign donors that he has no idea where much of their money has been spent.

In the 14 months since Hamas won elections, Palestinian finances have descended into such chaos that there is now no way to confirm whether aid is going to its stated purpose, according to Salam Fayyad, 54, who is poised to start his second stint as treasury chief once the rival Hamas and Fatah factions finalise a “unity” government.

An estimated £362.5 million has flowed into Palestinian government coffers from abroad since the election that brought Hamas to power and ushered in a period of internal conflict that came close to all-out civil war.

The European Union alone provided £59.5 million last year and sent a far greater sum directly to hospitals, power generation projects and to families in need.

Now, Palestinian Authority spending is out of control, salaries are being paid to workers who never turn up, and nobody can track where the money is going, according to Mr Fayyad.

There was no way to be certain that aid was being used as intended, he admitted. “Please write this: no one can give donors that assurance. Why? Because the system is in a state of total disrepair.”

Barack Obama, meanwhile, speaking to a group of Democrats in Iowa, wants to send the Palestinians more money.

Obama told the Muscatine-area party activists that he supports relaxing restrictions on aid to the Palestinian people. He said they have suffered the most as a result of stalled peace efforts with Israel.

“Nobody is suffering more than the Palestinian people,” Obama said while on the final leg of his weekend trip to eastern Iowa.

“If we could get some movement among Palestinian leadership, what I’d like to see is a loosening up of some of the restrictions on providing aid directly to the Palestinian people,” he added.