Arafat's Advisor Arrested for Transferring Money from Iraq to Families of
Palestinian Suicide Terrorists
IDF Spokesperson 9 October 2002

The Israel Security Agency, working together with IDF forces, recently
detained for questioning Rakahd Salim, the head of the Front for National
Liberation in the West Bank, who was directly responsible for the transfer
of Iraqi aid funds to the families of suicide bombers and Palestinian
terrorists.

Rakahd Salim, the General Secretary of the Front for National Liberation in
the West Bank, was arrested on October 2, 2002 after documents seized by the
IDF during operation "Defensive Shield" indicated that he was responsible on
behalf of Saddam Hussein for the distribution of money to the families of
Palestinian terrorists and suicide bombers.

During the course of questioning by the Israel Security Agency, Rakahd Salim
said that as head of his organization, he was in close contact with the
Palestinian Ministry in Iraq as well as with the Iraqi Ba'ath party's United
Pan-Arab Command. Salim last met Saddam Hussein in the year 2000, when he
talked with him mainly about the situation of the Palestinian people.

In addition, Salim said that in the framework of his activities he
distributed money to the families of Palestinians who were either killed or
wounded. This money was received primarily from the Iraqi government and its
leader, Saddam Hussein. When questioned, Salim said that so far he received
and distributed approximately $15 Million of the Iraqi government's money.

How Salim Transferred the Money to the Palestinian Families:

The president of Iraq, Saddam Hussein, was the one who decided that the
money be given to families of the Palestinians who were either killed or
wounded in the territories, and Saddam Hussein also determined the amount of
money transferred to the bank. Initially, the money was transferred to the
Iraqi "'Mashraf Al-Rapidin" bank in Amman, Jordan, and from there it was
transferred to the Alastismar Bank in Jordan. The money was then further
transferred to the account of the Palestinian Front for National Liberation
in the Alastismar bank in Ramallah.

Salim said that resolutions of Iraqi Ba'ath party's United Pan-Arab Command
provide for the family of a Palestinian who was killed to receive
approximately $10,000. A seriously wounded Palestinian receives
approximately $1,000 and a lightly wounded Palestinian receives $500.

Salim also said that as part of his job, he held regular weekly meetings
with the heads of the Hamas, the Popular Front for the Liberation of
Palestine and the Democratic Front, in which he discussed with them terror
attacks against Israel. He admitted that as senior member of the Palestinian
Front for National Liberation he was aware of the activities and operations
of his organization's military arm. This military arm carried out terrorist
attacks in the 1970s in the Israeli communities of Kfar Giladi, Kfar Yuval
and Misgav Am, among others.

Sice 1997 Rakahd Salim has served as Arafat's advisor for international and
political affairs. According to Salim, the Palestinian Authority is well
aware of the Iraqi financial aid given to the families of the Palestinian
suicide bombers.