Israel proposed to deliver the money, collected from Palestinian taxes and frozen since the outbreak of the intifada, for humanitarian purposes.
Israel today transferred NIS 70 million to the Palestinian Authority (PA), even though PA Minister of Finance Salam Fayyad earlier announced he would not accept the money.
Ministry of Finance officials in Jerusalem said the sum was transferred to Fayyad's account. Israel proposed to deliver the money, collected from Palestinian taxes and frozen since the outbreak of the intifada, for humanitarian purposes. Israel insisted the funds be transferred in an organized manner through the banks, and demanded transparency and supervision of the Palestinian ministries' expenditures.
Palestinian sources were angry that Israel initially promised to transfer NIS 200 million, but then decided to transfer the funds in three payments. "Israel is now placing obstacles and conditions on the transfer of the money," they said.
Diplomatic sources in Jerusalem told Hebrew website "Ynet" in response to the refusal, "Israel has already conceded the condition that the money be transferred only through a mechanism that will supervise its use, and has no intention of making further concessions. The aim is prevent the transfer of the money to groups that carry out terrorist attacks."
Published by Globes [online] - www.globes.co.il - on July 31, 2002