On Saturday evening, following a report by "Channel 2 News" on compensation transferred to the Judea and Samaria Council following the settlement freeze, Minister of Finance Yair Lapid ordered a halt to all financial transfers to the settlements until the use of the money is clarified.
In a statement, Lapid's bureau said, "In view of the information, which indicates that the money is not being used for its original purposes, such as security or school and kindergarten maintenance, but allegedly illegally transferred to the Judea and Samaria Council, which uses the money for political purposes, including activity against government policy, the minister of finance has ordered an immediate halt to future transfers."
At the same time, Lapid ordered the Ministry of Finance's budget director, accountant general, and legal adviser to investigate the matter and submit their conclusions to him within a week.
On Friday, "Channel 2 News" commentator Amnon Abramovich revealed that, since 2009, when the government decided to halt construction in the territories for ten months, local authorities in the territories have received compensation for arnona (local property tax) not collected on homes that were not built.
Following the report, Minister of Justice Tzipi Livni said that she would demand an investigation of the matter. She added that Minister of the Economy Naftali Bennett was chairman of that Judea and Samaria Council in that year.
Leader of the opposition MK Isaac Herzog (Labor) was also surprised by the findings and was scathing in his criticism. "Anyone who asks why home prices continue to rise and the government stands helpless, can find the answer in the huge grants transferred to the settlements," he said. Tens of millions of shekels, which could help the Negev and the Galilee, are transferred secretly to the settlements, he added. "I ask the prime minister and the finance minister, where is the money? I call on the State Comptroller to investigate the findings thoroughly."
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2014
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