The Security cabinet on Sunday approved the outline for the transfer of the Palestinian Authority's offset funds to Norway to hold in a third party trust, so that the remainder of the tax revenue collected by Israel for the PA would be received by Ramallah.
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National Security Minister Itamar Ben-Gvir was the one opposing vote claiming no funds should be delivered to the PA.
Finance Minister Bezalel Smotrich voted in favor and said none of the money would be used in Gaza. "From Israel's point of view, this is an important political achievement, there is an American guarantee that even if some of the money reaches Gaza, all funds can be withheld. This means that Norway has to agree to this condition, and that Israel has oversight. There is American backing here," Smotrich said.
"Unfortunately, Prime Minister Benjamin Netanyahu constantly moves the red line, Ben-Gvir said. "Sometimes they provide Gaza with fuel, sometimes they give up the demand for humanitarian aid in exchange for humanitarian aid, last week they began sending in trucks with flour and now they are making a decision that does not guarantee that the money would not reach the Nazis from Gaza. Unfortunately, even on the right, there are those who are still under the misconception and I don't think that 'good solutions come from Norway'".
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Netanyahu receives American request, Ben Gvir opposes and Smotrich authorized to take funds if agreement is broken
(Photo: Alex Kolomoisky, REUTERS/Brendan McDermid)
Hussein al-Sheikh, Secretary General of the PLO Executive Committee, protested the cabinet's decision. "Any deviation from our financial rights or any condition imposed by Israel that prevents the PA from paying our people in the Gaza Strip is rejected as far as we are concerned," wrote A-Sheikh. "We call on the international community to stop this behavior based on stealing the Palestinians' money, and to force Israel to transfer all the money that belongs to us."
The funds are tax refunds for Palestinian workers and Israeli goods transferred every month to the Palestinian Authority, which make up 65% of its annual budget. The budget ranges from 750 to 800 million shekels, with about 120 million shekels is intended to pay for PA employees in the Gaza Strip, The revenue is meant to pay the salaries of 32,000 security personnel.
According to the proposed outline which has U.S. approval, the money would be entrusted with Norway, which will not be allowed to transfer any sum to Gaza, not even on loan. The US will provide a monthly report to Israel showing no money had gone to Gaza.
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Will the U.S guarantee that no money is transferred to Hamas?
(Photo: Yonatan Zindel/Flash90, Reuters)
An official called this outline a "mega political event", in which the Americans and Norwegians actually adopt the Israeli position that it is impossible to transfer money to Gaza because "money to Gaza is money to Hamas". Adopting this position also has an impact on "the day after the war."