(Ha'aretz) - Aluf Benn An agreement signed at the beginning of the week by PA Finance Minister Salam Fayyad and Israeli Finance Ministry Director-General Ohad Marani spells out the conditions and supervisory mechanisms for the transfer to the PA of Palestinian tax revenues collected by Israel. Under the accord, Israel is obligated to resume the monthly transfers of tax revenues that it froze when the intifada erupted in September 2000. However, the accord pertains only to taxes collected in the future and does not relate to frozen revenues worth NIS 2.5 billion that have accumulated. At his meeting with U.S. President George Bush on October 16, Sharon promised to resume fund transfers to the PA, on condition that an international monitoring mechanism be set up to ensure that the money is not used to support terrorist activity. Israel demanded that an American accountant be responsible for monitoring the entire PA budget, and not only the use of tax revenues released by Israel. Fayyad agreed to permit monitoring of all PA budget allocations, on condition that it be done "invisibly" and without injury to Palestinian national pride. But security officials still have reservations about the agreement, because it leaves Arafat in control of the PA's coffers. These officials claim that PA money is continuing to be used to support terror.
2003-01-02 00:00:00Full ArticleBACK Visit the Daily Alert Archive