Arafat backs down in 'crony' row

Arafat has so far rejected the PM's resignation offer

Palestinian leader Yasser Arafat has reinstated his former head of security following violent protests in Gaza.

Mr Arafat had been accused of cronyism after appointing a relative, Moussa Arafat, to the post.

But Prime Minister Ahmed Qurei, who resigned over the affair, says his resignation still stands for now.

After a crisis cabinet meeting, Mr Qurei said a ministerial committee had been assembled to review the situation with Mr Arafat later on Monday.

He said the committee would also be sent to the Gaza Strip - where 18 people were wounded in fighting among Palestinians on Sunday night - to try to defuse tensions there.

Mr Qurei urged "for all our institutions to work efficiently" and for "the right people" to be appointed to the right positions - in other words, says the BBC's Barbara Plett, to get on with reforms.

But he said there was no challenge to Mr Arafat's leadership.

Militant protest

In a U-turn by Mr Arafat, Abdel Razek al-Majeida has been reinstated as director of general security for the Palestinian areas, a post he was asked to leave last week.

Analysis: Arafat cornered Gaza turmoil: Arabic press

Moussa Arafat, a cousin of the Palestinian leader, has been given back his old job as the head of military intelligence in Gaza.

Officials say Ismail Jaber will be the head of general security in the West Bank.

Moussa Arafat's promotion had sparked a revolt in Gaza among militants who saw it as evidence of cronyism.

Members of the al-Aqsa Martyrs' Brigades - an offshoot of Mr Arafat's own Fatah movement - attempted to storm the headquarters of military intelligence in the town of Rafah late on Sunday.

HAVE YOUR SAY By clinging to power, he creates more frustration and division among his people Mike Aziz, Vancouver, Canada Send us your comments

The BBC's Alan Johnston in Gaza City says the atmosphere there has been tense.

He says groups of gunmen remain in the city, occasionally letting off volleys of gunfire, and a demonstration is planned for Monday evening.

Exposed

Mr Qurei tendered his resignation on Saturday after a string of high-profile kidnappings - but his offer was rejected by Mr Arafat.

After Monday's cabinet meeting Mr Qurei said: "As yet, I have not received a written response, and therefore I consider that the resignation stands."

Moussa Arafat is seen by militants as a byword for cronyism

However, he also noted that "most... ministers in the cabinet are against this resignation".

In a call for unity and reforms, he said: "This is the time for all our institutions to work efficiently, this is the time to appoint the right people to the right positions."

He also called on his "beloved brothers in Gaza" to end the fighting, telling them it was "enough, enough and enough!"

Correspondents say the prime minister has been exposed by the lawlessness in Gaza.

Our correspondent says Mr Qurei was supposed to have been handed power over the security forces, which are fragmenting after years of Palestinian misrule and relentless Israeli military pressure.

But, she says, Mr Arafat is reluctant to surrender control of one of the main pillars of his rule, so Mr Qurei's position is becoming more and more untenable.

Power struggle

Correspondents say there is a struggle for control of Gaza ahead of Israel's planned withdrawal by the end of 2005.

They say younger Palestinian militants have been trying to assert themselves over the "old guard" of Yasser Arafat's generation, whom they accuse of corruption.

Meanwhile on Monday, Israeli soldiers killed two Palestinians in a clash in the village of Seida near the West Bank town of Tulkarm.

Israeli military sources say the Palestinians died in an exchange of fire with the Israeli army.