How European Union Aid Goes for War

COP/JCenter 23 June 2002

Newly translated documents captured during Operation Defensive Shield
describe how the PA diverts foreign aid money for terrorism and corruption.

Follow the Money: $6 Million a Month for War

Each month the PA receives millions of dollars in foreign aid. The EU
provides $9 million and the Arab states $45 million, according to a decision
by the Arab League of October 2000.

A part of these funds goes directly to the armed militias of Fatah. The
salaries of all PA workers -- from clerks to police and security forces --
are listed in dollars but paid in shekels. The official exchange rate is 16%
lower than the going market rate. The PA pockets the difference, to use
however it wishes, without the donor states realizing that their funds are
being diverted for other purposes.

The PA pays $40 million in salaries each month -- half goes to the
security forces. The exchange rate difference brings in an estimated $6.4
million every month, which is believed to go directly to the Al-Aqsa
Brigades and the local, Fatah-run, weapons and ammunition industries.

The EU is aware of these financial irregularities and has asked the PA
to allow the International Monetary Fund to supervise its finances.

Top PA Officials Enjoy Perks

+ Palestine Legislative Council chairman Abu Alla recently completed
construction of his new villa in Jericho, at a cost of $1.5 million.

+ Yasser Arafat used PA funds for a wedding gift of $50,000 to the son of
his friend, Nabil Amro, former minister of parliamentary affairs.

+ The son of Planning and International Cooperation Minister Nabil Sha'at,
studying in France, had his stipend doubled.

+ A deputy of Information Minister Yasser Abed Rabo received $100,000 to
help build a house.

+ In Hebron, the police levy a "protection" tax of $50 a month on grocers
in the shuk.

+ In Tulkarm, a businessman paid $100,000 to one of the intelligence
services after his brother was arrested on suspicion of cooperation with
Israel. After the payment, the brother was still not freed.

+ A gas station owner in Jericho reports that security personnel fill up at
his station and never pay.

+ Representatives of the PA have taken over land belonging to the Orthodox
Church in Bethlehem, forging ownership documents.

+ A senior Tanzim activist who raped and murdered a young girl in Bethlehem
was freed thanks to his friends and sufficient cash.

+ Arafat's economic advisor, Muhammad Rashid, controls gasoline and
concrete interests, has partial ownership of the Jericho casino, owns a
flour mill in Gaza, and is involved in other projects in industry and
tourism.

Translation and synopsis of "PA Officials Celebrate with Public Funds,"
Jacky Hogi, Maariv, 20 June 2002,
http://images.maariv.co.il/cache/ART308484.html

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