The defense establishment and the Ministry of Finance operate a secret, "extra-budgetary" fund, through which funds are transferred to the Palestinian Authority. This is another channel, which was not known until now, for the flow of budgets from Israel to the Palestinians.
The existence of the fund was revealed in a response submitted by the state to the Supreme Court in response to a petition by the Ecclesiastical Forum. A representative of the High Court, Adv. This amount is in a non-budget fund managed by the Civil Administration and the budget division of the Ministry of Finance. "
Ministry of Finance,
The existence of the fund is not known to any of the parties involved in the field.
Just a month ago, the Knesset's Foreign Affairs and Defense Committee held an extensive discussion on payments to the Palestinians.
The existence of the fund was not mentioned, although ten representatives of the government participated in the discussion, including Adviser to the Director General of the Ministry of Finance, Arava Alfasi, Head of the Civil Department of the Ministry of Defense, Col. Elad Goren, and legal advisers from various government ministries.
They responded to questions from Knesset members, who raised concerns about concealment and cover-ups on behalf of the state, and claimed that the picture they were presenting was complete.
None of them informed the MKs and other participants that such a fund exists, and that some of the transfers to the Palestinians are made through it.
Suspicion of concealment and rendering.
Abu Mazen, Photo: IP
Although the agreements on Israeli aid to the Palestinians are ostensibly purely economic, the state insists on not disclosing them to the public.
The state representative writes in her reply that the state is willing to present the agreements to the court, but "behind closed doors, and in the presence of only one party."
Advocate Ariel Erlich, who filed the petition on behalf of the Ecclesiastical Forum, responded: "We petitioned the High Court against the money transfers, because the Ministry of Finance refused to disclose the agreements and clarify that all transfers are made in accordance with the law." New: Secret 'non-budgetary fund'. This is an astronomical sum of NIS 100 million as a 'loan'. The Ministry of Finance did not bother to tell about the existence of this fund. Apparently this is a gross violation of the law. - The state is not allowed to set up non-budgetary funds to circumvent this ban.
"Astronomical sum".
Adv. Ariel Erlich, Ecclesiastical Forum,
"There is a very bad smell of concealment, breaking the law and terrorist financing.
The Ministry of Finance responded: "The fund's sources come from payments originating from activity in the area, among other things as a result of land use, including quarries, as well as from communications bodies. The amounts deposited in the fund are generally intended for activity in the area.
"It should be noted that in response to questions from various Knesset members, in relevant contexts we have previously provided information regarding the loan."
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