By
Michael Theurer* April 9, 2014
(“BIG”
Editor comments -The government is considering subtracting from the monthly tax revenue it
transfers to the Palestinian Authority the amount the PA pays to terrorists and
their families, a government official said on Wednesday.
Holding
back the monthly tax revenues – or a part of them – is one option Israel is
considering, the official said, in response to the PA ’s unilateral application
last week to join 15 international conventions and treaties, a move that sent
the diplomatic talks into a tailspin.
According
to a document released from the Prime Minister’s Office, the PA transferred
$153.5m. in 2012 to terrorists in Israeli prisons and to their families, as
well as to families of deceased terrorists, including suicide bombers. This
amounts to nearly 16 percent of all foreign aid to the PA .
It
should also be noted that the Palestinians owe in excess of $300 mill. to the
Israeli Electric Co. )
The
government in the West Bank is the only body receiving EU funds regardless of
its human-rights record or economic performance.
At a time of austerity and
belt-tightening, the European Union
remains the biggest donor to Third World countries. EU assistance to the
developing world serves European values and objectives—but only if EU
institutions abide by the highest standards of accountability in managing
European taxpayers' money. As a recent report by the European Court of Auditors
found, that hasn't always been the case with respect to EU aid to the West
Bank-based Palestinian Authority.
Since the 1994 Oslo
Agreement, which created the Palestinian Authority, the EU has offered generous
financial assistance to Ramallah to help advance a just and lasting peace between
Palestinians and Israelis. The EU is today the largest donor to the Palestinian
Authority, which relies mainly on foreign donations. But European lawmakers
have a duty to ensure that EU funds aren't diverted from the noble purpose for
which they're intended.
In its report, issued in
December, the European Court of Auditors revealed major dysfunctions in the
management of EU financial support to the Palestinian Authority, and called for
a serious overhaul of the funding mechanism.
Among other things, the
court criticized the absence of any conditions for EU aid to the Palestinian
Authority, an approach that reduces the potential leverage of the EU to push
for more reforms from the Palestinian Authority. This is a surprising exception
to the EU's famous "more-for-more" principle, according to which the
EU offers stronger partnership and more incentives to countries that make more
progress toward democratic reforms. This principle applies to every other
recipient of EU aid in the world. In other words, the Palestinian Authority is
the only body that receives EU funds regardless of its human-rights record or
economic performance.
The court also revealed
that, since 2007, "a considerable number" of Palestinian Authority
civil servants in Gaza have received their salaries partly funded through EU
aid—even though they "were not going to work due to the political
situation in Gaza." How exactly does this contribute to peace-building?
And how can the EU preserve its credibility back home when it pays salaries to
people who don't work, while millions of European citizens are unemployed?
The court also found that
the EU paid insufficient attention to the fungibility of the funds it provided
to the Palestinian Authority. There is reason to believe that EU financial
assistance has allowed the Palestinian Authority to use its own general budget
to support terrorist or criminal activities.
The Palestinian Authority,
for example, allocates a significant portion of its budget to paying salaries
to Palestinian prisoners convicted of terrorism offenses. These salaries are up
to five times higher than the average salary in the West Bank. Prisoners also
receive large grants from the Palestinian Authority. According to the Israeli
Ministry of Foreign Affairs, in 2012 the Palestinian Authority's payments to
convicted terrorists in Israeli prisons and to the families of deceased
terrorists (including suicide bombers) together accounted for more than 16% of
the annual foreign donations and grants to the budget of the Palestinian Authority.
In February this year the Palestinian minister for prisoners' affairs announced
that €30 million will be allocated to current or former prisoners in 2014.
One of the Palestinian
Authority's main challenges is its widespread reputation for graft. That
reputation has contributed to the success of Hamas, an EU-designated terrorist
organization. Very simply, the more the PA is perceived as corrupt by the
Palestinian people, the greater their support will be for Hamas. Thus, to
promote peace and stability, Brussels must help the Palestinian Authority build
strong and transparent institutions. This can't be achieved as long as the EU
fails to set clear conditions for aid.
How can we ensure that EU
financial assistance to the Palestinian Authority helps advance peace and
stability in the region, while also promoting freedom, democracy and the rule
of law? How can we guarantee no EU funds are used to reward terrorism? How can
we be sure that EU money meant for public investment doesn't wind up in private
Palestinian bank accounts?
The report from the
European Court of Auditors is a wake-up call on the need for stricter
supervision of how EU funding to the Palestinian Authority is spent. The
plenary of the European Parliament last week passed a resolution calling for
greater transparency in EU aid to the Palestinian Authority.
As chair of the European
Parliament's Committee on Budgetary Control and a contributor to that
resolution, I'm proud of my colleagues. But much more needs to be done: A
useful next step would be the imposition of clear benchmarks and conditions
that the Palestinian Authority would have to meet in order to receive
additional EU funds. These should include improving the state of human rights
in the West Bank, cracking down on corruption and cutting off subsidies to
convicted Palestinian terrorists.
In these hard times,
Brussels shouldn't tolerate blatant misuse of EU taxpayers' money.
* Mr. Theurer is chairman
of the European Parliament's Committee on Budgetary Control.