Arafat admits 'mistakes' in government

YASSER ARAFAT, who is under intense pressure to share power and reform his government, confessed yesterday that he has made mistakes but did not say what they were or how he would correct them.

In a decade at the helm of the Palestinian Authority, Arafat has resisted attempts to fight official corruption, reform the security services and relinquish some of his near-absolute powers.

In the Gaza Strip, meanwhile, Israel set off a mysterious explosion in an olive grove near the house of a senior Hamas activist, killing five Palestinians - at least four of them militants - and wounding seven. The main target, Hamas activist Ahmed Jabari, escaped with light injuries.

Arafat's speech in Ramallah came amid growing dissatisfaction in the West Bank and Gaza Strip at his rule. Last month, street protests erupted over some of his appointments, and Arafat's prime minister briefly threatened to resign.

Even his harshest critics have not demanded Arafat resign - he is still widely considered as a national symbol and a guarantor of unity - but he was clearly rattled by the protests.

In response, Arafat promised sweeping government reform and met MPs who asked him to put his pledges in writing. However, MPs have come away disappointed, saying Arafat has largely been evasive.

In his speech to parliament, Arafat acknowledged there is some official corruption, said those engaged in wrongdoing should be prosecuted and reiterated that he would streamline the security forces. However, he gave no specifics.

One of his harshest critics, former Cabinet minister Abdel Jawad Saleh, shouted that Arafat himself was protecting the corrupt.

Saleh complained afterwards that Arafat is "not serious" about reforms and warned there could be a non-violent "Palestinian uprising against this authority very soon".

Palestinian Prime Minister Ahmed Qureia, who briefly resigned last month in frustration at his lack of authority, sat next to Arafat during the speech. At one point, Arafat turned to him, saying: "My brother, my historical comrade, you have all my support for the work of your government."

The Gaza explosion, meanwhile, remained shrouded in mystery.

Israel said it was responsible for the blast, and that its air force was involved, but did not explain further.

However, Palestinians said they only saw an Israeli drone, or unmanned aircraft, and that there were no helicopters or warplanes in the sky. Some said they believed the drone had set off a bomb by remote-control.

One witness, Moussa Bakroun, 44, said: "We heard the sound of screaming from the Jabari olive grove across the street. We saw body parts everywhere, and a hole in the ground."

Hamas said among the dead were three of its members, including Jabari's adult son, as well as a member of the Islamic Jihad group.

The explosion came as Israeli Prime Minister Ariel Sharon prepared for a showdown with rebels in his Likud Party over bringing the dovish Labour Party into his government.

Many hard line Likud members, opposed to Sharon's plan to evacuate all 21 Jewish settlements in Gaza and four in the West Bank by late next year, are against letting Labour in, because it would cement a Cabinet majority in favour of the pull-out.