Behind Closed Doors: Secret Extra-Budgetary Fund Needs Transparency

The defense establishment and Finance Ministry are operating a secret, extra-budgetary fund, through which money is transferred to the Palestinian Authority.

The fund’s existence was revealed in the state’s answer to the Supreme Court in response to a petition filed by the Kohelet Policy Forum. State’s attorney Yael Morag Yako-El wrote that Israel had committed to transferring the Palestinians a “loan” of NIS 100 million ($28.86 million). “The source of this amount is an extra-budgetary fund managed by the Civil Administration and Finance Ministry’s Budgets Department,” she wrote. The state also refuses to show the agreements to the public; murkily insisting on revealing details of the fund only to the High Court behind closed doors.

Transparency must be enforced in this case. Attorney Ariel Erlich stated: “This whole story reeks of a cover-up, breaking the law, and funding terror. The citizens of Israel need to know whether public funds are transferred to fund terror through the circumvention of the Knesset’s laws.”

Finance Ministry transferring money to Palestinians via secret ‘extra-budgetary’ fund, by Ariel Kahana/Israel Hayom, July 18, 2022

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