Israel Pays the Palestinians

Israel's financial aid to Gaza unnecessary?

Document sent to Jerusalem officials and obtained by Ynet reveals Gaza government able to cover employees' wages without money funneled monthly by Israel

Roni Sofer
Published:
05.26.09, 12:07 / Israel News

Israel will continue to transfer funds to Gaza to pay for the salaries of Palestinian Authority employees in the Strip, although the Gaza authorities have enough money to cover the payments, The Prime Minster Office confirmed on Tuesday.

A document obtained by Ynet revealed that the finance system in Gaza has sufficient funds to pay for the wages even without the regular cash flow from Israel of taxes collected for the PA on Israel's behalf.

The document, which was recently sent to officials in Jerusalem, undermines the assumption that the PA is in desperate need of cash. Compiled on May 17, the paper states that, "The banks in the Strip had already paid a large part of salaries to Palestinian Authority employees before Israel transferred the NIS 50 million ($12 million)."

According to the document, at the beginning of May the PA demanded that Israel funnel NIS 195 million ($48 million) and another $19 million towards the payment of salaries. The paper also quoted a recent statement by the chairman of the National Islamic Bank in Gaza, who said that the "liquidity crisis" in the Strip's banks is over, and the Hamas finance Minister, who said that the monthly scope of salary payments stands only at NIS 61 million.

In the past right-wing activists and politicians have pointed to the fact Israel is incapable of ascertaining how the money it has been transferring to Gaza is being put to use, and said that at least some of the funds were being used to support the Hamas government, and possibly also sponsor terrorist activities.

However, Israel has continued funneling the money, mostly due to international pressure.
The Prime Minister's Office confirmed that NIS 50 million have been transferred to Gaza last week, and said that Israel will continue channeling the money to pay for salaries despite the data contained in the document in question.

[If it is MOSTLY DUE to pressure then it is also due to other factors.]






Palestinians