Palestinian National Authority Releases Data on Investments, Discloses Assets: Valuation & Transparency Report

Publication: www.yahoofinance.com

Monday March 3, 9:54 am ET

RAMALLAH, March 3 /PRNewswire/ -- The Board of Directors of the Palestine Investment Fund (PIF) on Thursday February 27th, 2003 released financial and corporate details about the PNA's investments and commercial activities. The 345-page report, presented to the Board of Directors, includes:
1. A list of assets owned or controlled by the PNA, consisting of 79 commercial investments.
2. Report on ten of the investments, including valuation by Standard & Poor's and transparency diagnostic by the Democracy Council.
3. A listing of current bank accounts formerly controlled by the Palestinian Commercial Services Company (PCSC).

"I am pleased to present this report to the Palestinian people. We promised our people to publish the findings of the international consultants. Today, as promised, we are making public the consultants' report. This is a major step forward. This exercise will continue until the valuation of all assets included in the report is completed," said Salam Fayyad, Chairman of the PIF and Minister of Finance.

The Fund exists as an independent agency wholly owned by the PNA. It was designed to help ensure that all commercial assets and investments are disclosed, managed, and monitored in a manner consistent with international standards of transparency, accountability, and good governance. The Fund is managed by a seven-member Board of Directors; a majority of whom come from the private sector.

The Fund's Articles of Association and Operating Manual were also made public in line with public commitments.

"This report the first in a series represents seven months work consisting of a process of consolidation and disclosures as required by the PNA's new policy of transparent reporting," added Minister Salam Fayyad.

"Going forward this fund will be managed according to the international standards of corporate governance detailed in the Articles of Association, which we hope will serve as a model for other Palestinian commercial and public sector activity," According to Minister Salam Fayyad, Chairman of the Fund.

Standard & Poor's and the Democracy Council have been providing strategic advice and they have conducted valuation and transparency diagnostics on the assets. The Democracy Council also helped design an accountable and transparent risk management system.

The following documents are available upon request:
• Palestine Investment Fund Articles of Association
• Palestine Investment Fund Policies & Procedures Manual
• Presidential Decrees authorizing formation of the Fund and adopting the Articles
• Valuation reports & transparency diagnostic for the first ten assets.
• Listing of investments and commercial activities

March 1, 2003