Tomorrow: The government will approve a budget of NIS 72 million to expedite the operation of the company, whose role is to enable money transfers to the Palestinian Authority.
In a proposal submitted to the ministers, whose full name is "Memorandum of the Correspondence Services Law," it was claimed that although the company was established as early as 2019, it is still unable to function.
"In view of the complexity of the move and various delays, we will be required to make the adjustments," the ministers wrote.
However, it is not clear from the document what the nature of the delays is, and why the state needs to allocate NIS 72 million to overcome them.
The wording of the decision stated that the amount would constitute an "owner loan" to the company.
However, a situation is already being considered in which the loan will not be repaid, and in such a scenario, a proposal will be submitted to the Finance Committee of the Knesset to turn the loan into a grant.
The proposal was submitted to the government by Defense Minister Bnei Gantz and Finance Minister Avigdor Lieberman.
The goal - to protect against claims of victims of terrorism and international investigations
As you may recall, the background to the law is the fear of Bank Hapoalim and Bank Discount of lawsuits against them, after many years of contact with the Palestinian banks.
Israeli intelligence and international reports indicate that Palestinian banks do not comply with international norms regarding the transfer of terrorist funds and the prohibition of money laundering, and Israeli banks have demanded that they withdraw their activities.
To take on the risk of transferring the funds, the government set up the government company Correspondence Services Ltd. in 2019. However, even after three years the company is still inactive, probably due to the same legal and financial risks that are troubling the banks. The government is initiating a dedicated law, which does not exist in relation to other government companies, and aims to allow Israeli employers to pay their Palestinian workers in an orderly and non-cash manner, as has been the practice for decades. fortune.
Were we wrong?
Fixed!
If you found an error in the article, we'll be happy for you to share it with us