On Feb. 5, outgoing Israeli Prime Minister Ehud Olmert ordered 170 million shekels, the equivalent of $43 million, to be transferred to Gaza.

Mr. Olmert said the funds represented an Israeli commitment to divert tax revenue to cover Palestinian Authority (PA) salaries for its officials in Gaza.

However, The Jerusalem Center for Public Affairs (JCPA) has issued a detailed report titled “Can the Palestinian Authority’s Fatah Forces Retake Gaza: Obstacles and Opportunities,” documenting how the PA has misused Israeli money.

The group, run by former Israeli U.N. Ambassador Dore Gold, says the PA has diverted cash reserves taken from Israel to pay the salaries of up to 12,000 Hamas officials. This is in spite of the active state of war between the Palestinian Islamist group and the State of Israel.

The JCPA report, authored by Dan Diker and Khaled abu- Toameh, reveals Hamas salaries are paid by means of an order issued by PA Prime Minister Salam Fayyad, a Fatah member.

This report will have wide ranging criminal implications for the new Israeli government, because Israeli counterterrorism law forbids any public or private concern from providing financial aid to any terrorist entity.

Israeli government sources defend cash transfers to pay salaries in Gaza, saying that the U.S. State Department has insisted that Israel transfer these funds to Gaza.

However, strict American counterterrorism laws also forbid any public or private concern from providing financial aid to any terrorist entity.

“It is widely believed that the PA in Ramallah only pays the salaries of civil service employees in Gaza to encourage them to stay at home to avoid working with Hamas,” the report said. “However, PA Prime Minister Fayyad also pays the monthly salaries of between 6,000 and 12,000 Hamas Executive Force operatives in Gaza, in line with the 2007 Mecca national unity agreement.”

The JCPA report shows that the PA has been paying armed Hamas terror groups as a part of the Mecca Accord, a reconciliation agreement reached between the Fatah and the Hamas in March 2007. That accord remains intact. The salaries, transferred in cash by the Israeli government, have continued to be paid despite Hamas’ complete armed takeover of Gaza in June 2007.

Messrs. Diker and abu- Toameh said the cash transfers continued even through the Hamas-Israel war in January, meaning the Israeli government was actively funding many of the same people it was fighting.

David Bedein can be reached at dbedein@israelbehindthenews.com

Yesterday, the 120 seats in Israel’s Knesset Parliament stood for election, and as the results came in late into the night, it saw a reversal of fortune for the ruling Kadima Party as it snatched defeat from the jaws of victory.

As of press time, with more than 85 percent of ballot boxes counted, the Kadima political party, led by Israeli Foreign Minister Tzipi Livni, had won about 22 percent of the popular vote, giving her party 29 seats in the election.

The Jewish Telegraphic Agency (JTA), which describes itself as the “voice of the Jewish people,” ran a banner headline saying “Vindication for Livni in surprise victory.”

At 1:30 a.m, Israeli time, Ms. Livni, exuded with self confidence and spoke to a throng of Kadima suporters in a large hall in Tel Aviv, proclaiming that “the people of Israel have spoken,” because the projected results showed that Kadima had won a plurality of votes.

She called it a “total victory,” declaring that as the party with the highest amount of votes in the Israeli political spectrum, she and her party had received a “clear mandate” to rule the country.

Ms. Livni’s speech, accompanied by loud music and continuous applause by party faithful, went on for more than 15 minutes, where she repeated over and over that Kadima had won.

However, she had not taken into account the possibility of political parties across Israel’s political spectrum combining their total votes to throw Kadima out of office.

The Likud party, led by former Israeli Prime Minister, Foreign Minister and Finance Minister Benyamin Netanyahu, followed with a projected 28 seats.

Israel Beiteinu, led by Russian-born Avigdor Lieberman, who took a hardline stance against Israeli Arab leaders who opposed Israel’s recent military operation in Gaza, was expected to win 16 seats

Israel’s veteran Labor party, led by Israel Defnse Minister Ehud Barak, suffered an astounding defeat, garnering only 12 seats.

Israel’s four Orthodox Jewish parties gained at least 19 seats, while Israel’s Arab parties claimed 10 seats.

With Mr. Lieberman declaring that he would join a nationalist coalition, sunrise on the Israeli political horizon on this morning showed the dawn of a new political era for Israel. This showed Israeli voters had given those opposed to further Israeli compromises in future negotiations with Israel’s Arab neighbors a clear mandate in the Knesset.

A news commentator on the Voice of Israel Radio Newsreel said at 3 a.m. this morning, local time, that Ms. Livni’s 1:30 a.m. speech will be reserved for posterity as one of the funnier moments in Israel’s political history.

David Bedein can be reached at dbedein@israelbehindthenews.com

Candidates from 34 Israeli political parties who are contending for 120 seats in Israel’s Knesset scrambled yesterday from location to location, from photo-op to photo-op in a last-minute attempt to win over another few voters.

The front-runner, Likud Chairman Benjamin Netanyahu, a 1967 graduate of Cheltenham High School, toured northern Israel and planted an olive tree on the Golan Heights. He used his appearance there to insist a government under his leadership would not withdraw from the Golan Heights. The strategic piece of land, also claimed by Syria, was taken by Israel in 1967 to protect Israel’s northern Galilee from shelling by Syrian gunners.

Mr. Netanyahu also used the occasion to proclaim that he would not compromise Israeli control of Jerusalem’s sovereignty.

Yet the surprise of this year’s Israeli political campaign is Russian-born Avigdor Lieberman, who will undoubtedly perform a leading role in any coalition formed by Mr. Netanyahu following the election.

Assuming the polls published up until now are correct, Mr. Netanyahu will likely form the next government. Senior Likud officials have gone even farther to state should Mr. Lieberman demand leadership of the Defense Ministry in the course of future coalition negotiations, Mr. Netanyahu would not be able to turn him down.

As of mid-December, Mr. Netanyahu was expected to win this election hands down, following Prime Minister Ehud Olmert’s fall from power. The current prime minister’s predicament came amid revelations he was caught taking bribes from an American businessman and after he was caught embezzling funds from American philanthropies.

Mr. Lieberman’s party had been expected to be relegated to the role of a yet another minor party partner in any future Israeli government.

Yet Mr. Lieberman did what no other Israeli politician did: He played on the strong emotions that emerged during Israel’s incursion into Gaza.

During that time, while Israeli military forces were fighting Hamas terrorists who were firing rockets at one million Israeli residents, Israeli Arab Members of the Knesset led mass demonstrations of Israeli Arabs against the Israeli army.

The strident support given by Israeli Arabs for Hamas resulted in a Jewish backlash against Israeli Arabs, who number 1.4 million, in a country of 7.5 million citizens.

Mr. Lieberman became the one Israeli politician to immediately integrate Israeli popular anger against Israeli Arab support of Israel’s enemy into his political campaign, and his popularity has blossomed.

Mr. Lieberman’s slogan was simple: No Israeli citizen should vote or serve in Israel’s Knesset if he demonstrates disloyalty to the country, and his call has resounded in every corner of Israeli society.

Other major Israeli political parties such as Kadima, lead by Foreign Minister Livni and Labor, lead by Defense Minister Ehud Barak, have announced that their parties would sit in a government with Mr. Lieberman should either party form a future Israeli government.

The Arab world is closely following the elections in Israel and there is a clear concern in the Arab media due to the rise in the polls of Mr. Lieberman.

The Arab media also closely followed the publication of the last election polls in the weekend Israeli newspapers.

“Lieberman may pass the 20-seat mark, according to the polls of the
Israeli newspapers,” reported the popular Arab newspaper al-Quds. “This is only three seats less than Kadima is expected to get, and six less than the number of seats that the Likud is expected to receive in the elections.”


Other Arab commentators are quoted as saying that “in the coming elections, Lieberman may even be Israel’s prime minister.”

Another expression of the Arab media’s fear of Mr. Lieberman can be found in the following quote, which appeared in “al-Quds” in Jerusalem: “Lieberman will ultimately decide who Israel’s next prime minister will be, because his support for a particular candidate will resolve almost 
conclusively the issue of forming the government”

Their conclusion is correct. Mr. Lieberman’s warning about the disloyalty of Israel’s Arab population now represent the most popular position on the Israeli political horizon.

David Bedein can be reached at dbedein@israelbehindthenews.com 


Iran has presented Egypt with an ultimatum: allow the unloading of equipment destined for Gaza at al-Arish or face harsh diplomatic ramifications.

Last week, on the same day the Israeli Navy stopped the Lebanese ship and brought it to Ashdod, an Iranian ship carrying supplies for Gaza made its way through the Mediterranean.

Iranian officials told the Egyptians their ship carried humanitarian aid and demanded the Egyptians allow them to unload the equipment in a Sinai port. The Iranians warned preventing the ship from being unloaded could lead to ramifications up to and including the severance of diplomatic ties.

The Egyptians, as of now, are not allowing the Iranian ship to unload its cargo at any Egyptian port due to concerns the humanitarian aid may conceal a military equipment shipment. They also hope to sever Iran’s grip on the Gaza Strip.

A similar Iranian ship that almost reached Gaza was forced away by the Israeli Navy just a few weeks ago. It did not receive Egyptian clearance to dock at any of its ports eventually was forced to return home.

This time around, the Iranians are determined to get their cargo in, even at the price of provoking a crisis between themselves and Egypt.


A concerted Iranian effort to resume military aid to Gaza stands in the background of these new Iran-Egypt tensions.

The Iranian government has recently expressed its concern over the efforts of the United States along with its NATO allies – as well as Egypt – designed to halt the smuggling of arms from Iran to Sinai and from there to Gaza. Egyptian diplomatic sources have said that the Iranians are in a 
state of hysteria due to their fear that a multi-national force will be capable of preventing any transfer of Iranian military equipment through the Red Sea.

Amid this fear over “the closing of the Red Sea,” there is a concerted Iranian effort to get advanced military equipment into Sinai as soon as possible, before the consolidation of any international naval force.


Israel is also in a state of alert due to the stated Iranian intention to intensify the pace of smuggling into Sinai already within the next few months. According to Egyptian sources, the Iranians plan to transfer military equipment into the Gaza Strip at an unprecedented pace. Among other things, this includes much newer anti-tank missiles as well as long-range rockets.

David Bedein can be reached at dbedein@israelbehindthenews.com

There is an oft-repeated statement that echoes across the Israeli political spectrum during the current Israeli political campaign, which is Israel will overthrow the Hamas government, which now rules Gaza.

With that threat in mind, a high level Hamas five-member delegation is now conducting talks in Cairo with one goal in mind: To gain international backing for the future of their Islamic regime in Gaza, which is the first Sunni Islamic regime in the Arab world. The Islamic regime in Iran is Persian and Shiite, not Arab and Sunni.

The Hamas delegation included Gaza Foreign Minister Mahmoud Zahar, who emerged from six weeks of hiding to arrive in Cairo. This marked Mr. Zahar’s first public appearance since the 22-day Israel-Hamas war, in which he was said to have been injured.

The arrival of the Hamas delegation took place one day after a senior Israeli Defense Ministry official held talks in Cairo with Egyptian intelligence chief Maj. Gen. Omar Suleiman.

“They [Egypt] have a duty to provide guarantees that bind the Zionist entity, and the Egyptians have to give us answers to our inquiries,” Hamas spokesman Fawzi Barhoum told the Egyptian media.

The spokesman of the Hamas delegation said that he was also concerned about any proposed international presence along the borders of Gaza. He said that Hamas demanded that international monitors have no authority to stop travelers or goods

Hamas has also sought to control humanitarian shipments to Gaza. On Feb. 6, in the wake of several Hamas seizures of humanitarian supplies, the United Nations Relief and Works Agency (UNRWA), which has operated Palestinian refugee camps since 1949, announced it had suspended all aid imports to Gaza until further notice.

UNRWA spokespeople said Hamas had earlier seized 200 tons of rice and 100 tons of flour imported from Egypt. The U.N. agency said the Hamas seizure was the second in three days.

“UNRWA’s suspension of imports will remain in effect until the aid is returned and the agency is given credible assurances from the Hamas government in Gaza that there will be no repeat of these thefts,” the UNRWA said in a press statement.

There is a fly in the ointment of the UNRWA denunciation of Hamas: In the UNRWA workers union elections of 2003, 82 percent of the UNRWA employees declared their membership in the Islamic Bloc party, which is run by Hamas. In June 2004, the head of UNRWA, Peter Hansen, told a Canadian TV network that Hamas-affiliated members were on his staff.

Meanwhile, UNRWA officials acknowledge that candidates for employment with UNRWA are not even asked if they are members of Hamas.

UNRWA officials also acknowledge that there is no requirement for UNRWA personnel to dissociate themselves from Hamas.

In other words, UNRWA will have to investigate its own employees who are Hamas members played a role in the Hamas theft of humanitarian supplies to UNRWA.

David Bedein can be reached at dbedein@israelbehindthenews.com

On Thursday morning, an Israel Navy force intercepted, boarded and took control of the cargo ship named “Tali” which was bearing the flag of Togo and was attempting to enter the port of Gaza.

The boat sailed from the port of Tripoli, Lebanon a few days ago, docking in Cyprus before continuing its journey to the Gaza Strip.

While at sea, Israel contacted the vessel, clarifying that it would not be permitted to enter Gaza’s coastal waters because of security.

The Israeli Navy operated under the assumption the ship carried weaponry destined for Gaza.

Melkite Greek-Catholic Archbishop Hilarion Capucci, a native of Syria, was a passenger on the Lebanese vessel. The Melkites are an Arab Christian group that uses the rituals of the Greek Orthodox Church, but are part of the Roman Catholic Church.

Archbishop Capucci, now 84, who had been head of the Melkite Greek Catholic Church in Jerusalem, gained notoriety 35 years ago when he was apprehended after smuggling weapons to Fatah terrorists in Jerusalem.

Israeli security arrested and deported him 32 years ago because of his involvement in terrorism.

In May 1974, three Katyusha rockets ready for launch were discovered in the near the United Nations headquarters in Jerusalem overlooking the Old City.

A day earlier, an explosive device had also been located in Jerusalem. That same month, three brothers were arrested for committing a series of terror attacks.

They admitted belonging to the Fatah terrorist organization and said that the munitions had been given to them at a school belonging to the Melkite Greek-Catholic Church in Beit Hanina.

Not long after that, Israeli security learned that the munitions, including the Katyusha rockets, had been smuggled to Israel from Lebanon by Archbishop Capucci, who had hid them in his car.

Israeli security placed the cleric under surveillance and arrested him on his way to Jerusalem.

In a thorough search of his Mercedes, four Kalashnikovs, two pistols, a package of plastic explosives, a hand grenade and more were found.

Archbishop Capucci claimed that the weapons had been placed in his car without his knowledge; however, a letter found among his effects had the phone number of a Lebanese terrorist, which revealed his terror connection.

Eventually, Archbishop Capucci admitted that he had used his position as a senior religious cleric to smuggle weapons to Fatah terrorists.

He was tried and sentenced to 12 years in prison and was released in Nov. 1977 following an appeal from Pope Paul VI.

David Bedein can be reached at dbedein@israelbehindthenews.com

The Middle East Newsline has learned from Israeli security sources that there is a distinct possibility that Hamas has achieved the capability to torpedo Israel’s parliamentary elections on Feb. 10.

Israeli government sources confirm that Hamas could fire salvos of missiles and rockets that would prevent hundreds of thousands of people in central and southern Israel from voting in Knesset elections.

They said Hamas has threatened to wield this option in an effort to win concessions, including open borders with Egypt and Israel as well as international aid.

“Right now, we face a situation where Hamas could wipe out the election process within moment’s notice,” a government source said. “If Hamas doesn’t agree to a cease-fire, then there could be chaos next week [during the elections].”

On Tuesday, Defense Minister Ehud Barak convened what officials termed an emergency meeting of military and intelligence chiefs on the subject of the Israeli elections. Mr. Barak was said to have sought intelligence assessments of Hamas capabilities and intentions as well as the feasibility of an immediate ground operation in Gaza.

The Israeli intelligence community has assessed that Hamas was being encouraged by Iran and Syria to torpedo the Israeli elections. They said Hamas political bureau chief Khaled Masha’al and five members of the political bureau were receiving tens of millions of dollars in aid as well as instructions during their visit to Teheran in early February.

David Bedein can be reached at dbedein@israelbehindthenews.com

The hands of the clock at the health clinic in the city stopped at 7:11 a.m.

At that precise time, a Grad rocket exploded in the heart of the city Tuesday morning for the first time since the end of the Israeli military operation in Gaza.

The rocket fell not far from schools, in an area where hundreds of children walk to school every morning. This time, the rocket preceded them by a few minutes.

Rocket schrapnel damaged cars and buildings, including the health clinic, where about 10 people were located at the time of the explosion.

Three of the people suffered from shock and required treatment, including the cleaning woman, who had been taking out the trash.

For fear of continued rocket attacks on the city, the municipal parents committee announced that school would be canceled. The Ashkelon municipality and the Home Front Command thought differently, creating confusion among the parents.

Ashkelon Mayor Benny Vaknin instructed that school be held as usual, so as to return the city to routine life as quickly as possible, but only about half the pupils showed up.

“It is impossible for the parents committee to make decisions without consulting security officials,” said a municipality source.

Yesterday morning, school was held as usual in Ashkelon in all educational institutions and kindergartens.

Israeli Army Home Front Command Maj. Gen. Yair Golan instructed soldiers of the Home Front Command to accompany the pupils to school. This morning, a company of officers will deploy in Ashkelon schools in order to raise the pupils’ sense of security.

David Bedein can be reached at dbedein@israelbehindthenews.com

The Qatar-based al-Jazeera reported that Hamas has decided to increase security for senior officials in Gaza to protect them from an Israeli attack prior to an agreement on a truce.

Security has also been beefed up for senior Hamas officials who live outside of the Gaza Strip.

Palestinian military sources report to al-Jazeera that Hamas intended to step up its security in order to protect its senior officials both inside the Gaza Strip and overseas.

The sources said that the Hamas government in the Gaza Strip under the leadership of Prime Minister Ismail Haniya had asked senior political officials and security officials to take extra safety precautions. Moreover, the senior officials were asked not to go to places where either their lives or the lives of civilians would be in danger.

According to the al-Jazeera report, Hamas’ personnel security unit in Gaza beefed up its security measures for the movement’s spokesmen in the Gaza Strip and have asked the senior Hamas officials who reside out of the Gaza Strip to be more cautious and to refrain from excessive media appearances.

Palestinian military sources said that Hamas’ precautionary measures in Gaza had been ordered in response to information that was obtained by the Hamas government about Israeli intentions to escalate its operations in the period leading up to the impending announcement of a new truce agreement with Hamas.

According to the report, Hamas anticipates that Israel will attack a number of times in the Gaza Strip prior to the general elections next Tuesday.

David Bedein can be reached at dbedein@israelbehindthenews.com

Fears of a possible Hezbollah attack along Israel’s northern border marking the first anniversary of terrorist leader Imad Mughniyah’s assassination is a major reason for Israel’s tepid response to renewed Palestinian rocket attacks.

Mughniyah was responsible for numerous terror attacks against American and Israeli targets around the world prior to his death, including the 1983 Beirut Marine barrack bombing and a 1994 attack against a Jewish center in Buenos Aires, Argentina.

Israel Defense Minister Ehud Barak chose Tuesday to tour Israel’s northern border, along with Israeli Northern Commander Maj. Gen. Gadi Eisenkot and Galilee Division Commander Brig. Gen. Imad Fares. In the course of the tour, Mr. Barak commented on one of the issues currently troubling Israel on the northern front-the transfer of weapons from Syria to Hezbollah.

“There are systems that could disrupt the balance that exists in Lebanon, and we will have to weigh our reaction if they should pass,” Mr. Barak said in the course of the tour.

Mr. Barak conveyed an unequivocal message to Hezbollah in advance of the anniversary of Mughniyah’s death, on Feb. 12.

“I don’t recommend that Hezbollah test us. The outcome could be more painful than they think. The Lebanese government bears overall responsibility,” Mr. Barak said.

The Israeli Army Northern Command has raised its state of alert, for fear of a revenge attack by Hezbollah on the border and fears of a terror attack against Israeli targets abroad.

Mr. Barak examined the Northern Command’s plans for the possibility of deterioration, and approved them.

Israeli army officials assess that Hezbollah will try to stage a terror attack, but not one that will lead to renewed warfare with Israel.

Mr. Barak also commented on a Hamas rocket attack against Ashkelon in southern Israel.

“I suggest that Hamas not get too clever. The Grad rocket that fell in Ashkelon will not pass without a response. The dove has not yet returned with an olive branch, because the water has not yet receded,” Mr. Barak said. “Hamas tried to sow death and destruction, and suffered a harsh and painful blow. Hamas will no longer be what it was before.”

Israel limited its response to the Ashkelon attack yesterday to an air strike by the Israeli Air Force (IAF).

IAF planes attacked smuggling tunnels on Philadelphi Road along the Egyptian border and two Hamas positions, one in Beit Lahiya and the other in the Khan Yunis area in the Gaza Strip.

No one was injured in the strikes, since the residents of Rafah received prior notification warning them of an IAF strike, which also called on them to leave their homes.

Meanwhile, sources in Rafah reported yesterday that in total, about 200 of the 500 tunnels that were active before the war had been hit.

One Gaza resident said yesterday, “the situation in Gaza is becoming harsher from day to day. We live in a disgusting situation. The social and economic situation is terrible, and the political situation is even worse. If the Rafah crossing should be opened tomorrow to free passage, at least 200,000 of Gaza’s residents would escape and not return, and I would be among them.”

David Bedein can be reached at dbedein@israelbehindthenews.com