A few weeks ago Israel transferred USD 100 million dollars to Abu-Mazen (PA). Despite the latter's specific assurances, a few days after the transfer, the money was gone from the bank account only to be channeled to other recipients.
Ben Caspit with Felix Frish,Ma'ariv, March 8, 2007
Israeli officials are accusing the Palestinian Authority of "deceit and breach of trust" as it was discovered that the PA, in defiant violation of initial agreements, were not using the money for the declared purposes and did in fact divert it to other ends. The US Congress also decided to halt the USD 86 million aid intended to strengthen Pres. Abbas' special presidential security forces. In fact, the US administration had decided to freeze the money transfer after the Mecca agreement and the Palestinian unity government formation, but the decision was influenced by the Israeli reports that the hefty sums received by the Palestinians were being funneled towards undesired purposes.
Olmert is fuming
The Israeli PM office produced a letter signed by Salem Fiyad, Abu-Mazen's money man, detailing how the USD 100 million transferred a few weeks previously were to be used. According to this letter, USD 86 million were meant to strengthen Abu-Mazen's security forces, and the remainder was to be spent on humanitarian purposes, also agreed upon prior to the transfer, and some to be transferred to the Presidential Office. As per this agreement, Israel deposited the money in a previously-designated bank account whence the different sums were to be transferred further to their subsequent destinations. Except that a few days later, the money was "gone" from the designated account, and it later transpired that it had actually been channeled to different destinations, among them Palestinian government salaries and other expenditures, in flagrant violation of the financial embargo imposed on the Hamas-led government.
PM Olmert could not hide his anger, and is expected to confront Abu-Mazen on the issue in a future meeting. Olmert hopes, however, to be able to strengthen the connection with Abu-Mazen and also to revive the peace talks with the PA, while shunning the Hamas government. During private talks, Olmert has reiterated his determination to boycott Hamas ministers even when the unity government is formed, and even if it includes Fatah representatives such as Salem Fiyad and Muhammad Dahlan, who are accepted by the Israeli administration. "We shall not recognize them as members of the Palestinian government, and we shall not deal with them in that capacity", said Olmert.
