Defense Minister Benny Gantz on Monday denied any knowledge of extra-budgetary "loans" to the Palestinian Authority. His comments came in response to a report published by Israel Hayom earlier in the day that the defense establishment and Finance Ministry were transferring millions of shekels to the PA through a secret, extra-budgetary fund.
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According to MK Simcha Rotman (Religious Zionist Party), several months ago he asked Gantz for details about the loans in question and down payments the defense minister himself ordered to be transferred to the Palestinians.
"It was reported that the State of Israel gave the Palestinian Authority two loans, one in May 2020 and the second in August 2021, with each reaching hundreds of millions of shekels," Rotman wrote to Gantz in March 2022. Because Gantz personally agreed to the loans and other measures with PA President Mahmoud Abbas, Rotman has asked the defense minister to declare the specific amounts to which he committed and their payment dates, even warning that granting the Palestinians such benefits could contravene the Counter-Terrorism Law – which also stipulates that Israel deduct payments to the PA from the taxes it collects on its behalf due to the PA's so-called "pay-for-slay" policies.
Gantz, as stated, denied any knowledge of the payments. "After probing with all the relevant bodies, it was found that the issue is not under the purview of the defense establishment," he wrote to Rotman and even advised him to "turn your inquiry to the Finance Ministry."
It should be noted that letter was sent last Thursday with Gantz's personal signature. The defense minister's account of the matter doesn't coincide with the facts. He is the governing authority in Judea and Samaria and therefore any key issue pertaining to relations with the Palestinians is his responsibility, including economic ties.
Gantz himself, as a reminder, personally agreed on economic measures to help Abbas. What's more, the Civil Administration in Judea and Samaria, which is also managing a secret extra-budgetary fund reportedly transferring NIS 100 million to the Palestinians, is directly subordinate to the defense minister.
Rotman was incensed by the response he received from Gantz.
"This is what fraud and breach of trust look like, when Gantz signs a letter full of lies and hinders my ability as a member of Knesset to oversee public funds," Rotman said.
In the wake of Monday's report, MK Bezalel Smotrich (Religious Zionist Party) told Israel Hayom that he has known of the fund's existence for some time now and that the questions he asked about its purpose were not answered.
The defense ministry declined Israel Hayom's request for a response.
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