The government will continue to deduct the Palestinian Authority’s (PA) debts to Israel, particular Israeli infrastructure companies (Israel Electric Corporation (IEC), Mekorot National Water Company, fuel companies and hospitals), from transfers of tax revenues, even though transfers to the PA were halted on February 19, following Hamas’s victory in the PA elections.
At yesterday’s cabinet meeting, the government decided “that the deduction of funds - as per the order of the Finance Minister - from the amounts being transferred, as defined by Article 12 of the 1994 Law Implementing the Agreement on the Gaza Strip and Jericho Area - Economic Arrangements and Various Directives, will not be viewed as the transfer of funds from Israel to the PA.”
The decision to legally redefine the deduction of PA debts was taken in order to allow Israeli bodies to continue to provide essential services, thereby preventing a humanitarian disaster in the PA. The decision will make it possible to continue the supply of electricity, water, fuel, food products, drugs and the hospitalization of Palestinian patients and wounded.
Under the cabinet decision of February 19, taken in the wake of Hamas’s victory in the PA elections, the transfer to the PA of tax revenues collected by Israel on the PA’s behalf was suspended. These transfers amount to at least $54 million per month.
Last night, Acting Prime Minister Ehud Olmert held a special discussion on Israel’s policies towards Hamas following the swearing in of the new Palestinian government. The following decisions were taken:
- Israel will not hold ties with the Palestinian Authority, which is a hostile authority, and will act to prevent the administrative establishment of the Hamas government.
- The Palestinian Authority is one authority and does not have two heads; links with it will be reduced and no ties will be held with it. There will be no personal disavowal of the Palestinian Authority chairman (Mahmoud Abbas (Abu-Mazen)).
- Foreign visitors who meet with Hamas officials will not be received for meetings with Israeli officials.
- Israel will coordinate with the international community regarding humanitarian assistance for the needs of the Palestinian population, not via the Palestinian Authority establishment (which the Hamas will take over).
- Subject to security considerations, the Gaza Strip crossings will be open in order to allow the entry of humanitarian assistance into the Gaza Strip.
Olmert said these recommendations will be submitted to the full cabinet for approval soon.
Published by Globes [online], Israel business news - www.globes.co.il - on April 10, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006