Israel releases frozen Palestinian funds
2013-01-30 18:58
Jerusalem - Israel said on Wednesday it had released $100m
of the tariffs and tax money it collects on behalf of the Palestinian
Authority, which were frozen last year as punishment for the UN bid.
But an Israeli official said it was a one-off measure to
ease the financial crisis faced by the Palestinians and was not a sign that the
transfers would be renewed.
"This decision was taken by Prime Minister Benjamin
Netanyahu because of the Palestinian Authority's very difficult financial
situation," an official at the premier's office told AFP.
"But this transfer is temporary and affects only
funds owed for one month," he added, speaking on condition of anonymity.
"The prime minister did not commit to continue these
transfers."
The Palestinians said Israel's decision to transfer money
on a one-time basis was effectively "extortion”.
"Israel's announcement that it will transfer 400m
shekels [$107.31m] of our money on a one-time basis means they will continue to
carry out extortion on this issue," Palestinian negotiator Saeb Erakat
told AFP.
"Israel is using our money, which it collects, as a
sword hanging over our heads," he said.
"Israel should pay us our money immediately and the
international community should condemn this Israeli piracy and stop it
immediately," he added.
"The transfer of the funds on a one-time basis means
the financial and political siege is continuing and that nothing has changed in
Israeli politics and Netanyahu's approach."
Israel in early December announced it would not transfer
tax and tariff funds it collects for the Palestinians in response to their
successful bid for upgraded UN membership, a move the Jewish state had fiercely
opposed.
Every month, Israel transfers tens of millions of dollars
in customs duties that are levied on goods destined for Palestinian markets
that transit through Israeli ports, and which constitute a large percentage of
the Palestinian budget.
The transfers are governed by the 1994 Paris Protocols that
governs economic agreements between Israel and the Palestinians.
But Israel often freezes the transfer of funds as a
punitive measure in response to diplomatic or political developments viewed as
harmful.
The measure has deepened an already dire financial crisis
faced by the Palestinian Authority, which has frequently been unable to make
payroll for its employees over the last year.
In response to Israel's freezing of the funds, the
Palestinians have urged Arab nations to activate a promised "safety
net" of $100m a month to make up the shortfall.
But despite pledging to deliver the money, funds have yet
to materialise, leaving the Palestinian Authority unable to pay its thousands
of government employees, who are still owed half their salaries from November
and all their salaries from December.
