PA CLOSES 103 NGOS AND CHARITIES, MOST WITH LINKS

C O N F I D E N T I A L JERUSALEM 001820 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/WATERS; TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON E.O. 12958: DECL: 08/28/17 TAGS: ECON EFIN KFTN PTER PGOV KWBG SUBJECT: PA CLOSES 103 NGOS AND CHARITIES, MOST WITH LINKS TO HAMAS Classified By: Acting Principal Officer Thomas Duffy, reasons 1.4 (b) a nd (d). ¶1. (U) PM Salam Fayyad announced August 27 a PA cabinet decision to dissolve 103 charitable and non-governmental organizations in the West Bank and Gaza due to violations of laws governing civil groups. Publicly, Fayyad denied that the action is aimed at Hamas institutions, asserting that NGO compliance with relevant laws has been under review for a long time. He said that the 103 institutions can appeal the closures. Fayyad urged beneficiaries of these organizations to contact the Ministry of Social Affairs, which will consider extending equivalent assistance on a case-by-case basis. He noted that there are about 2,400 registered NGOs in the West Bank and Gaza. ¶2. (C) In a meeting August 28 with visiting NEA DAS Rob Danin, Fayyad said there was no official proclamation; rather, he announced the initiative in a meeting with print journalists on August 27, and would follow-up ith electronic media on August 28. Fayyad said he list of the establishments would be distributd soon. He commented that the initial number ofclosures "had to be over 100 to make an impact" ad that he plans on closing other establishments on a case-by-case basis. ¶3. (C) Palestinian Montary Authority (PMA) Deputy Governor Jihad al-Wair told Econoff August 28 that most of the instiutions are affiliated with Hamas, including many stablished inappropriately during the period when amas led the PA. He said that actions taken aganst the 103 are based on the Charities Law (Artile 38),enforcement of which is the responsibiliy of the Ministry of Interior. He said the PMA bgan issuing circulars to banks August 27 to freezethe accounts of the targeted institutions. The ames of the 103 institutions will not be made pulic until these notifications are completed. . (C) Palestine Stock Exhange CEO Hassan Abu Libdeh told Econchief Augus 28 that the action was clearly aimed at Hamas-afiliated charities. "If there are non-Hamas charties listed, they are only one or two, and only togive the action 'balance'." Al Ayyam editor Akrm Haniyeh told DAS Danin that Fayyad is taking a"very difficult, brave decision" in ordering thecharities closed. DUFFY