Tax payments to Palestinians frozen
The Israeli government has again ceased payments of frozen tax revenues to the Palestinian National Authority even though it had recently reached agreement on special audit arrangements for the cash.
A double suicide bombing in Tel Aviv on Sunday prompted Ariel Sharon to shut down payments and then refuse permission for Palestinian officials to travel to London for a peace conference next week.
Israel holds some £261m in collected customs duties on goods destined for Palestinian territory. Partial payments resumed last month following a peace agreement that appointed USAID accountants to monitor the money’s audit trail to ensure it would not finance terrorism. Two payments of some £7m have been made so far.