In a significant development amidst escalating tensions following the Gaza war, Israel has approved a new payment of over $140 million to the Palestinian Authority. This decision follows the unblocking of previously frozen funds, a move that had been implemented by Israeli Finance Minister Bezalel Smotrich since the conflict began.
The initial payment of $116 million, covering duties collected for April and May, was announced on Wednesday. A subsequent payment of approximately $140 million for June was approved on Thursday. This decision signifies a partial reversal of the policy adopted by Smotrich, who had withheld these funds, arguing that the Palestinian Authority had supported Hamas, the militant group responsible for the attacks in Israel.
Israel collects tax and customs duties for the Palestinian Authority based on a 1994 protocol granting Israel sole control over the territories’ borders. These payments account for a crucial 60% of the Palestinian Authority’s revenue, making them essential for maintaining its operations, particularly in paying salaries for public sector employees.
The release of the funds comes after the Palestinian Authority confirmed the receipt of the initial $116 million, which will be used to address unpaid wages for tens of thousands of Palestinian civil servants and suppliers. The Authority has faced financial hardships in recent months, prompting repeated appeals for international aid.
Despite this development, a considerable amount of money remains outstanding. The Palestinian Prime Minister, Mohammed Mustafa, asserted that Israel still owes the authority over $1.6 billion in back payments.
The decision to release the funds is believed to be linked to negotiations over settlements in the West Bank. According to Israeli media reports, Smotrich agreed to the payments only after securing government recognition of five unauthorized settlements in the West Bank, a move condemned by the international community.
The situation remains complex, with deep-seated mistrust and accusations continuing to fuel tensions between Israel and the Palestinian Authority. The release of the funds, while providing much-needed relief to the Palestinian Authority, does not address the underlying issues driving the ongoing conflict.
