The defense establishment and Finance Ministry are operating a secret, extra-budgetary fund, through which money is transferred to the Palestinian Authority.The fund's existence was revealed in the state's answer to the Supreme Court in response to a petition filed by the Kohelet Policy Forum. State's attorney Yael Morag Yako-El wrote that Israel had committed to transferring the Palestinians a "loan" of NIS 100 million ($28.86 million). "The source of this amount is an extra-budgetary fund managed by the Civil Administration and Finance Ministry's Budgets Department," she wrote.Attorney Ariel Erlich, who submitted the petition on behalf of the Kohelet Policy Forum, said..."Theoretically, this is a gross violation of the law. After all, if the law stipulates what and how you are permitted to transfer to the PA, the state cannot create extra-budgetary funds to bypass this prohibition."He added: "This whole story reeks of a cover-up, breaking the law, and funding terror. We hope the court won't allow the Finance Ministry to continue obscuring and blowing smoke. The citizens of Israel need to know whether public funds are transferred to fund terror through the circumvention of the Knesset's laws."The Finance Ministry said in response that the "fund is sourced from payments pertaining to the use of lands, including quarries, along with media bodies as well. The sums that are deposited in the fund are earmarked for such matters. It should be noted we have answered questions posed by various Knesset members before, within the relevant contexts, about the loan."
The Hebrew report, if true, reveals that Palestinian Authority officials agreed to accept money in exchange for “special services,” and that the authority has become like some countries that receive money in exchange for non-national services, provided to serve the national enemy, and not what is announced about explicit relations.
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