Israel freezes $193m to Palestinians over ‘martyr’ cash

Israel will withhold more than $193m from the Palestinian Authority for payments given to families of ‘martyrs’.

A Palestinian about to sling a teargas canister back to Israeli forces at the Gaza border with Israel. Picture: AFP

Israel will withhold more than $US138 million ($193m) from the Palestinian Authority because of payments given to families of “martyrs” who attacked against Israelis.

The security cabinet said late on Sunday it was implementing a law passed last year allowing Israel to withhold funds used to pay stipends to Palestinian attackers and their families from taxes Israel collects on the behalf of the PA.

Nabil Abu Rdeineh, a spokesman for Palestinian President Mahmoud Abbas, said that Israel’s action was “a unilateral blow” to bilateral agreements, and that any deduction of taxes by Israel was “piracy of the Palestinian people’s money”. Palestinian Prime Minister Rami Hamdallah called Israel’s action “open war against the Palestinian people” and an attempt to destroy the PA.

Israel says the payments encourage violence — a claim the Palestinians reject. In the past Palestinian officials have defended the payments by saying those involved in deadly attacks are a small percentage of those aided by the fund, and that the PA has a responsibility to its citizens like any other government.

The freeze comes as the Palestinians face budget cuts made last year after the US slashed funding for the UN’s Palestinian refugee program and for development programs in the Palestinian territories. The UN’s World Food Program also cut back services due to funding shortages.

AP