CASH TO HAMAS CROSSES RAFAH BORDER

C O N F I D E N T I A L CAIRO 006936

SIPDIS

NOTE BY CIB: DO PROCESS AS IS PER EAO MATTHEW SANDERLAND.

SIPDIS

NSC FOR WATERS

E.O. 12958: DECL: 11/21/2016
TAGS: PREL PGOV PTER MEPN EFIN ECON KPAL EG IS
SUBJECT: CASH TO HAMAS CROSSES RAFAH BORDER

REF: A. CAIRO 6910 (NOTAL/EXDIS)

B. 11/20/06 SCHEDELBAUER-HEGADORN E-MAIL

CLASSIFIED BY AMBASSADOR FRANCIS RICCIARDONE FOR REASONS 1.4
(B) AND (D).


1. (C) LOCAL SOURCES TOLD EMBOFFS ON NOVEMBER 20 THAT TWO
HAMAS MINISTERS HAD SUCCESSFULLY TRANSPORTED OVER FOUR
MILLION DOLLARS INTO THE GAZA STRIP VIA EGYPT'S RAFAH
CROSSING DURING THE PREVIOUS WEEK, DESPITE SENIOR-LEVEL GOE
ASSERTIONS TO THE CONTRARY (REF A). EGYPTIAN INTELLIGENCE
CHIEF OMAR SOLIMAN TOLD NEA ASSISTANT SECRETARY WELCH ON
NOVEMBER 15 THAT THE MONEY HAD BEEN CONFISCATED AT THE BORDER
BY GOE OFFICIALS AND DEPOSITED INTO AN EGYPTIAN BANK ACCOUNT.
IN A SOMEWHAT DIFFERENT ACCOUNT, MINISTER OF FINANCE, YOUSEF
BOUTROS GHALI, TOLD THE AMBASSADOR ON NOVEMBER 19 THAT THE
FUNDS WERE TEMPORARILY CONFISCATED BY GOE CUSTOMS, BUT LATER
RELEASED BACK TO ONE OF THE HAMAS OFFICIALS; HOWEVER, THAT
OFFICIAL HAD "DISAPPEARED" BACK INTO EGYPT WITH THE CASH.


2. (C) SEEKING ADDITIONAL DETAILS, EMBOFFS SPOKE WITH THE
SENIOR EGYPTIAN DEPARTMENT OF MILITARY INTELLIGENCE OFFICIAL
AT THE RAFAH BORDER, COLONEL ASHRAF EL EWENY (PROTECT),WHO
CONFIRMED PRESS REPORTS THAT TWO HAMAS MINISTERS HAD HAND
CARRIED 4.3 USD MILLION DOLLARS INTO GAZA VIA RAFAH ON
NOVEMBER 15. SIMILARLY, EMBOFF SPOKE BY PHONE WITH AN EU-BAM
MONITOR ON NOVEMBER 20, WHO SAID THAT EUROPEAN MONITORS AT
THE PALESTINIAN RAFAH TERMINAL HAD WITNESSED THE PHYSICAL
TRANFER OF FUNDS INTO GAZA BY THE TWO HAMAS MINISTERS -
MUSHIR AL MASRI AND AHMED ATTIYA BAHR - (REF B). ACTING DCM
ALSO RAISED THE ISSUE ON NOVEMBER 20 WITH MFA ASSISTANT
MINISTER FOR ARAB AFFAIRS HANI KHALLAF, WHO DENIED ANY
KNOWLEDGE OF THE MONEY TRANSFER ISSUE.


3. (C) LATE ON NOVEMBER 20, THE AMBASSADOR TOLD MINFIN
BOUTROS GHALI THAT WE HAD CONFIRMED THE TRANSIT OF THE MONEY
AND THE HAMAS COURIERS WITH THE EU-BAM. BOUTROS GHALI SAID
HE WOULD INVESTIGATE.


4. (C) ON NOVEMBER 21, THE HEAD OF EGYPTIAN CUSTOMS AT RAFAH
BORDER TOLD VISITING POLOFF THAT THE TWO HAMAS MINISTERS WERE
ALLOWED TO TRANSIT THE BORDER WITH USD FOUR MILLION BECAUSE
THEY HAD AN "OFFICIAL PERMIT" (NFI) TO DO SO. IT IS UNCLEAR
WHO ISSUED THE PERMIT.
RICCIARDONE