ISRAELI ACTION AGAINST WEST BANK CHARITIES

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000365 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR GOLDBERGER/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/PASCUAL; TREASURY FOR SZUBIN/GRANT/HARRIS/NUGENT/HIRSON E.O. 12958: DECL: 02/27/18 TAGS: ECON EFIN KFTN PGOV KWBG IS SUBJECT: ISRAELI ACTION AGAINST WEST BANK CHARITIES UNDERMINE PA EFFORTS REF: A. 07 JERUSALEM 2583 ¶B. JERUSALEM 275 Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d). ¶1. (C) Summary. Israeli security forces raided the offices of three charities in Jenin February 19, according to press reports, destroying property and confiscating equipment and other contents. The IDF carried out similar actions February 26 against two charities in Hebron. In both Jenin and Hebron, merchants and residents occupying charity-owned property were ordered to evacuate by April 1 or risk arrest. Press accounts stated that all the targeted charities were ordered closed because of alleged ties to Hamas. The Palestinian Authority (PA) official spearheading efforts to dissolve non-compliant NGOs told Econoff that the charities targeted in the raids had been identified by PA investigators as having legal and/or financial problems, and action had already been initiated against them. PA officials complain that, as in raids earlier this month against West Bank money changers, Israeli unilateral action in Zone A violates the Interim Agreement and undermines the PA's credibility. End Summary. ¶2. (SBU) Israeli security forces raided the offices of three charities in Jenin February 19. The director of one of the charities -- Risal Barahmeh of Al Bara' charity -- told local press that Israeli security forces have raided and closed Al Bara' six times in the past seven years, and goods confiscated in these raids have never been returned. She asserted that Al Bara' is registered with the PA. ¶3. (SBU) The IDF carried out similar raids early on February 26 in Hebron against The Muslim Youth Society and The Islamic Charitable Society, according to local media reports. Israeli forces entered offices, buildings, schools, bakeries and orphanage dormitories owned and/or operated by the charities, confiscating vehicles, computers, electrical appliances, chairs, tables, and other items. Merchants renting commercial space from the charities reportedly received orders to evacuate their shops by April 1, 2008 or risk arrest. Families renting apartments in the same buildings received the identical instructions. The order also transferred ownership of properties of both charities to the Israeli authorities, according to press reports. Several guards were arrested. ¶4. (C) PA Ministry of Interior (MoI) Director General of the Public Admissions Office for NGOs Fadwa Al-Sha'r told Econoff February 27 that the charities targeted in the recent raids had all previously been identified by PA investigators as having legal and/or financial problems. (Note: In late 2007, the MoI, under instructions from Prime Minister Fayyad, launched a legal and financial review of all NGOs operating in the West Bank and Gaza (ref a). End note.) Al-Sha'r stated that the MoI has already initiated action against these charities, which will culminate in their closure if problems are not fully addressed. She confirmed that Al Bara' charity (as noted above) is registered with the MoI, but its official status is under threat due legal and financial irregularities. Another charity in Jenin, unregistered and known simply as the "Emirate Charity," is under investigation as an "illegal society." According to Al-Sha'r, its director had funds transferred into his personal bank account, some of which were later disbursed to Hamas-affiliated charities in the West Bank and Gaza. The Muslim Youth Society is also currently subject to a financial investigation. ¶5. (C) Al-Sha'r said that, as part of its review, the MoI has lawyers in every major West Bank city examining files of NGOs. She added that the MoI and the Ministry of Finance have a joint investigations committee reviewing problem cases. Her office also works closely with the Palestine Monetary Authority (PMA). She acknowledged that capacity constraints have slowed the process, but said the situation is improving. She complained that unilateral Israeli action against West Bank charities undermines the credibility of her ministry's efforts. She added that she is not aware of any effort by the GOI to pass derogatory information on charities to the PA. ¶6. (C) In a February 27 conversation with Econoff, PMA Governor Jihad Al-Wazir likened the raids on charities to those on February 12 against West Bank money changers (ref b),describing both as a "serious infringement" on the JERUSALEM 00000365 002 OF 002 efforts of PM Fayyad and in "violation of the Interim Agreement." He asserted that the PMA continues to work with banks to improve the monitoring of financial transactions in the Palestinian banking sector, but expressed concern that any perceived shortcomings may result in similar unilateral Israeli actions against banks operating in the West Bank, with "destabilizing consequences." WALLES