Identifier
Created
Classification
Origin
08JERUSALEM986
2008-06-10 14:34:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
PA RECEIVES REVENUE TRANSFER; PAYS CIVIL SERVANTS
how-toVZCZCXRO5555 PP RUEHROV DE RUEHJM #0986 1621434 ZNY CCCCC ZZH P 101434Z JUN 08 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC PRIORITY 1769 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L JERUSALEM 000986
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR
GOLDBERGER/SHAMPAINE/SACHAR; NSC FOR ABRAMS/PASCUAL;
TREASURY FOR ROSE
DEPT PLEASE PASS TO USAID FOR ANE/MEA:MCCLOUD/BORODIN
E.O. 12958: DECL: 06/09/2013
TAGS: EFIN ECON KWBG IS KPAL
SUBJECT: PA RECEIVES REVENUE TRANSFER; PAYS CIVIL SERVANTS
REF: TEL AVIV 1205
Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d).
C O N F I D E N T I A L JERUSALEM 000986
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR
GOLDBERGER/SHAMPAINE/SACHAR; NSC FOR ABRAMS/PASCUAL;
TREASURY FOR ROSE
DEPT PLEASE PASS TO USAID FOR ANE/MEA:MCCLOUD/BORODIN
E.O. 12958: DECL: 06/09/2013
TAGS: EFIN ECON KWBG IS KPAL
SUBJECT: PA RECEIVES REVENUE TRANSFER; PAYS CIVIL SERVANTS
REF: TEL AVIV 1205
Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d).
1. (SBU) Palestinian Authority (PA) Ministry of Finance
officials confirm receipt on June 10 of 180 million NIS (USD
55 million) in tax clearance revenue from the GOI, the
transfer of which had been delayed for nearly a week
(reftel). Following receipt of the revenue transfer, the PA
paid civil servants in the West Bank and Gaza. PA workers
report long lines at banks and ATMs but confirm payment of
monthly salaries plus 1,000 NIS of any outstanding salary
arrears.
2. (C) Ministry of Finance officials report that the amount
transferred reflects a unilateral GOI deduction of an
additional 70 million NIS (USD 21 million) on top of the
agreed deduction of 112 million NIS to cover payment for
ongoing electricity, hospital and water service. PA
officials understand the additional deduction to be intended
to pay down debt owed to the Israel Electric Company (IEC).
Prime Minister Fayyad told the Consul General that he had
agreed to this additional deduction from the July transfer,
but that the GOI unilaterally brought it forward to this
month. Comment: The GOI gave the PA no explanation for this
step, but PA officials widely believe it was intended as a
response to PM Fayyad's recent letters to EU and OECD
Ministers objecting to upgraded ties with Israel.
3. (SBU) The amount transferred June 10 therefore reflects
approximately 362 million NIS (USD 110 million) of tax
clearance revenue collected by the GOI during April 2008,
minus:
-- 70 million NIS for ongoing electricity service,
-- 30 million NIS for hospital services,
-- 12 million NIS for ongoing water supply, and
-- 70 million NIS to pay down debt to IEC.
WALLES
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR
GOLDBERGER/SHAMPAINE/SACHAR; NSC FOR ABRAMS/PASCUAL;
TREASURY FOR ROSE
DEPT PLEASE PASS TO USAID FOR ANE/MEA:MCCLOUD/BORODIN
E.O. 12958: DECL: 06/09/2013
TAGS: EFIN ECON KWBG IS KPAL
SUBJECT: PA RECEIVES REVENUE TRANSFER; PAYS CIVIL SERVANTS
REF: TEL AVIV 1205
Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d).
1. (SBU) Palestinian Authority (PA) Ministry of Finance
officials confirm receipt on June 10 of 180 million NIS (USD
55 million) in tax clearance revenue from the GOI, the
transfer of which had been delayed for nearly a week
(reftel). Following receipt of the revenue transfer, the PA
paid civil servants in the West Bank and Gaza. PA workers
report long lines at banks and ATMs but confirm payment of
monthly salaries plus 1,000 NIS of any outstanding salary
arrears.
2. (C) Ministry of Finance officials report that the amount
transferred reflects a unilateral GOI deduction of an
additional 70 million NIS (USD 21 million) on top of the
agreed deduction of 112 million NIS to cover payment for
ongoing electricity, hospital and water service. PA
officials understand the additional deduction to be intended
to pay down debt owed to the Israel Electric Company (IEC).
Prime Minister Fayyad told the Consul General that he had
agreed to this additional deduction from the July transfer,
but that the GOI unilaterally brought it forward to this
month. Comment: The GOI gave the PA no explanation for this
step, but PA officials widely believe it was intended as a
response to PM Fayyad's recent letters to EU and OECD
Ministers objecting to upgraded ties with Israel.
3. (SBU) The amount transferred June 10 therefore reflects
approximately 362 million NIS (USD 110 million) of tax
clearance revenue collected by the GOI during April 2008,
minus:
-- 70 million NIS for ongoing electricity service,
-- 30 million NIS for hospital services,
-- 12 million NIS for ongoing water supply, and
-- 70 million NIS to pay down debt to IEC.
WALLES