ARAFAT BLOCKS COURT ORDER UNFREEZING HAMAS ACCOUNTS

C O N F I D E N T I A L JERUSALEM 000926 NEA FOR BURNS/SATTERFIELD AND NEA/IPA NSC FOR ABRAMS/DANIN/KIFAYAT TREASURY FOR OASIA/MILLS E.O. 12958: DECL: 03/23/2014 TAGS: PTER EFIN KPAL KWBG PREL IS SUBJECT: ARAFAT BLOCKS COURT ORDER UNFREEZING HAMAS ACCOUNTS REF: JERUSALEM 915 CLASSIFIED BY: CONSUL GENERAL DAVID D. PEARCE, REASONS 1.5 (B) AND (D). ¶1. (C) ON THE EXPLICIT INSTRUCTIONS OF YASIR ARAFAT, PALESTINIAN MONETARY AUTHORITY (PMA) GOVERNOR AMIN HADDAD CALLED ECON/C MARCH 23 TO REPORT THAT ARAFAT HAD INSTRUCTED THE PMA AND THE PA SECURITY SERVICES TO BLOCK IMPLEMENTATION OF THE MARCH 21 HIGHER JUDICIAL COUNCIL ORDER UNFREEZING 39 BANK ACCOUNTS ASSOCIATED WITH HAMAS-AFFILIATED ISLAMIC CHARITIES (REFTEL). ARAFAT HAD ORDERED HADDAD AND THE SECURITY CHIEFS TO INSTRUCT THE BANKS TO KEEP THE ACCOUNTS FROZEN BY "PRESIDENTIAL DECREE." ¶2. (C) HADDAD SAID HE HAD MET MARCH 23 WITH INTERIOR MINISTER HAKAM BAL'AWI, NSF WEST BANK CHIEF HAJ ISMA'IL JABIR, PA POLICE CHIEF GHAZI JABALI, ATTORNEY GENERAL HUSSAIN ABU AL-ASI, AND HIGHER JUDICIAL COUNCIL HEAD ZUHAIR SURANI,TO DISCUSS NEXT STEPS. ALL AGREED TO IMPLEMENT ARAFAT'S DECREE. THEY ALSO DECIDED TO ESTABLISH A MECHANISM FOR DISBURSING THE FUNDS REMAINING IN THE ACCOUNTS TO NEEDY BENEFICIARIES DIRECTLY THROUGH THE MINISTRY OF SOCIAL AFFAIRS; ALL APPLICANTS WOULD BE SCREENED BY PA SECURITY TO ENSURE NO LINKS TO TERRORIST ORGANIZATIONS, AND NO FUNDS WOULD BE RELEASED WITHOUT ARAFAT'S EXPLICIT CONSENT, HADDAD REPORTED. (NOTE: IN A MINISTRY OF INTERIOR REPORT SHARED BY BAL'AWI'S STAFF ON HIS INSTRUCTION WITH THE CONSULATE, THE ACTION IS PORTRAYED AS A BAL'AWI DECISION AND ACTION ITEM. END NOTE) ¶3. (C) COMMENT: ARAFAT'S EXPLICIT INSTRUCTIONS TO HADDAD TO INFORM THE USG OF THIS DECISION INDICATE THAT ARAFAT HOPES TO GARNER SOME POLITICAL BENEFIT (OR AT LEAST CREDIT) FOR THE MOVE. WHILE IT IS INHERENTLY GOOD THAT MILLIONS OF DOLLARS ARE NOT GOING TO BE RETURNED TO CHARITIES AFFILIATED WITH HAMAS, HADDAD HIMSELF SAID THAT ARAFAT'S DECREE BLOCKING THE HJC ORDER HAD NO BASIS IN PALESTINIAN LAW. END COMMENT. PEARCE