A Palestinian government spokesman denied on Saturday Israeli accusations that Prime Minister Ismail Haneya was involved in funding terrorist organizations in the West Bank.

"These accusations are false and untrue. They reflect the Israeli government's confusion because of the success and the support that the (new) Palestinian unity government has gained," spokesman Ghazi Hamad said in a statement faxed to the press.

During a recent interview with an American magazine, Israeli Prime Minister Ehud Olmert said Haneya "is a terrorist," who transferred money to Palestinian groups in the West Bank to carry out attacks against Israel.

Hamad refuted Olmert's accusations, saying "everyone knows that the money we brought from outside was but in the financial ministry's accounts."

In addition, Hamad accused Olmert of being responsible for " killing the children, demolishing homes and raiding the Palestinian towns."

Olmert and his government have withheld the Palestinian money and prevented aid flows, Hamad added.

Source: Xinhua