The Gaza terror group later denied ties to the killing, but claimed responsibility once again Thursday, saying that Arafat's son, Minhal, would be released several hours later.
Security officials at the time said Hamas was behind Arafat’s assassination, even though the murder was carried out by the Popular Resistance Committees.
According to the sources, Hamas directed the assassins in a murder apparently motivated by the upcoming Palestinian elections. They said Hamas had recently used the Committees as an operational arm on several occasions.
In a strange turn of events Friday, the Popular Resistance Committees once again denied any connection to the affair, and this time claimed that Palestinian minister Mohammad Dahlan was responsible for the murder and kidnapping.
"Dahlan and his people are behind the assassination because of internal disagreements," an official announcement by the group stated, accusing Fatah leader and Gaza security head Samir Masharwi for organizing the assassination for Dahlan.
Fatah: False accusations
The organization claims Dahlan used his time in Amman to instigate the incident, when he was supposedly undergoing medical treatment.
The group added that despite bad relations with Arafat and his corruption, the Popular Resistance Committees does not harm its rivalries by assassination - its weapons are only aimed at Palestinian enemies.
"Dahlan's success in involving and entangling our activists in this crime does not mean we are responsible for the assassination," the statement said. "The policy of political killings does not fit our vision."
Fatah officials have denied the statement, calling it a "fabricated and false announcement."
However, accusations of Dahlan's involvement in the incident are not surprising, as relations between the PA minister and ex-security chief were known to be bad.
Arafat's supporters have blamed security forces, namely Dahlan loyalists, in the past for previous assassination attempts on Moussa Arafat's life.
A source close to Dahlan told Ynet Friday evening that "the denial is unfortunate as there is no evidence to such a claim, and that Dahlan's efforts over the past months have been aimed at allowing for Israel's successful withdrawal from the (Gaza) Strip and the rehabilitation of Gaza in the coming months."