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

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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