Peloni:  The relevance of this 2023 proposed study stands today as being arguably more relevant than ever.  Note that UNRWA now operates on a $1.6 billion budget and not as stated in this proposal which was written two years ago.

David Bedein | Center For Near East Policy Research Ltd | Original Proposal Dated 2023

Israeli corporations have a de facto monopoly on the provision of supplies to Gaza  and other PA areas. The ability of these corporations to sustain their exclusive  control of this multi-billion dollar market is wholly dependent on COGAT  (Coordinator of Government Activities in the Territories) decision making. Over the past several weeks, COGAT has raised an alarm that humanitarian aid from  UNRWA is not reaching the Palestinian population. Noting that this alarm is  inconsistent with 1000 trucks a day carrying Israeli products into Gaza, the Center for  Near East Policy Research (CFNEPR) contacted 44 donor nations. With the exception  of a nominal reduction in U.S. aid, every donor nation responded emphatically that  UNRWA and hence Gaza, is receiving 100% of its customary donations, an amount  that CFNEPR calculates to be $1.2 billion dollars per year.

This on-going funding includes $13.5 million transferred on behalf of the Bank of  Israel each month in cash by COGAT officials at the Erez border crossing that is put  into the hands of the UNRWA workers union which is under the control of Hamas.  Once the Israeli goods have been offloaded from the Israeli trucks, witnesses have  observed cash payments being made to COGAT officials.

Why Is COGAT Raising an Alarm?

One possibility is that the current storm puts the Israeli monopoly at risk. Another is  the opportunistic view that this is a good time to expand the lucrative export trade.  Our best estimate is that about 150 former COGAT officials are senior executives at  companies that export goods to Gaza and PA areas.

The tradition of former COGAT officials joining commercial enterprises for the sole  purpose of profiting from exports to Gaza and the PA began in 2005. With the  expulsion of the Gush Katif communities and the hand over of their assets to Hamas  via the World Bank, Gaza became a cash cow for Israeli entrepreneurs. At the time,  Gen. Eival Giladi, the COGAT official in charge of the expulsions was placed in charge  of Palestinian business development through the Portland Trust. It was at this  juncture that former COGAT officials responsible for vetting Israeli products paid for  in cash by Gazans began abandoning service to COGAT in order to assume profitable  roles as exporters to Gaza.

At the time, an investigation we carried out exposed arrangements by which the IDF,  the PA, the U.S. and UNRWA cooperated to hand the Gaza economy over to Hamas.  Today, for Israel’s financial stakeholders, preservation of a status quo in which  Israeli corporations maintain a de facto monopoly on the provision of supplies to PA areas is a top priority. The advantages of preserving this monopoly also give those  corporations good reason to try to influence military decision making.

The idea that the IDF would consider commercial interests in its military planning at  first seems preposterous. However, mounting practical and circumstantial evidence  is telling precisely that story. It begins with what we already know with certainty:  UNRWA has historically promoted Israeli commercial interests by maintaining a huge  labor force willing to work below minimum wage while living in housing, enjoying  educations, and using water and electricity paid for by UNRWA. To this day, the PA  areas remain a captive consumer economy dependent on Israeli products.

The synergy created by Israel’s official hands-off policy and the clear interest that  UNRWA, the PLO, and donor nations have in perpetuating the status quo create a  perfect economic storm in which Israeli conglomerates operate. Through their  complicity in perpetuating this status quo, UNRWA, the PLO, and donor nations have  provided Israeli commercial interests with a smokescreen behind which they obscure  their exploitation of a captive consumer market.

It is understandable why Israeli businesses would want to sustain the status quo. By  1987, there were 300,000 Palestinian UNRWA workers in Israel — equaling nearly 7%  of the entire population of the country. The intifada led to a withdrawal of that  workforce, but by then the attitude of the Israeli business community was fixed. The  captive UNRWA market was a golden goose for Israeli products delivered to a  suffering population by ostensibly helping hands.

Our initial finding is that financial windfalls, greed, and the appeal of monopoly has  brought about a situation where former IDF officers may be using their influence to  sustain a status quo that not only harms Israel’s national interest, but which may  impact on IDF tactical and strategic decisions in Gaza. It is not a remote possibility  that this situation has both resulted in the loss of Israeli soldiers and exposes civilians  to increased danger.

The ensuing situation has been one in which massive amounts of pilfered cash from UNRWA and other humanitarian agencies has wound up in the hands of Hamas for the  sole purpose of supporting terrorist activities. Huge sums of this cash are earmarked  by Hamas for purchasing Israeli products. We have subsequently been able to  confirm that in the case of each of the three IDF incursions into Gaza between 2007  to 2014 that were on the verge of decisively crushing Hamas were eased as a result  of demands by the Israeli business community that their products be allowed to get  through.

Our published findings to date have included the disturbing revelation that a high  ranking COGAT official set up a company in charge of cement distribution in Gaza. In this arrangement UNRWA in Gaza was given responsibility for ensuring this cement  would not reach Hamas terrorists. If the unsavory absurdity of this arrangement requires further verification, one need only look at the number of terrorist tunnels  that continue to be discovered and destroyed, and the amount of cement that is  being imported to replace them. This is a supplier’s dream scenario.

That this scenario is something other than building materials that simply slipped  through the cracks is borne out by the fact that there are NO RESTRICTIONS on Israeli  exports to Gaza:

According to COGAT, there is no restriction on those wishing to bring goods into Israel,  and that it is entirely possible that Gazan terrorist organizations are carrying out  trade with Israeli citizens.

“There is no list of authorized merchants, since, generally speaking, there is no restriction on those wishing to trade [with Gaza].” – COGAT (see The Jewish Press,  July 2, 2018)

Our sampling has confirmed that these exports are dominated by firms owned by  former senior IDF officers. In the face of both compelling circumstantial evidence and the preliminary data we have uncovered, there is an urgent need to answer one  remaining question with certainty:

DOES THE ISRAELI ARMY REGULATE ITS ACTIONS to benefit COMMERCIAL INTERESTS OF ITS FORMER OFFICERS?

Over ninety days we will tie circumstantial evidence to an exhaustive investigation in order to answer this question conclusively and make recommendations by:

  • Examining Israeli profit-making corporations that engage in “humanitarian  aid” to the Palestinian Authority (PA) and Gaza
  • Auditing revenue and profits of these businesses
  • Identifying end-users of products exported from Israel to the Palestinian Authority and Gaza

Our team will include tri-lingual investigators (Hebrew, English, Arabic) with  backgrounds in economics and security analysis.

 

Investigation 

With the exception of high-tech, the businesses being examined operate with the  oversight of the Israeli Army and COGAT. The rules are such that high-tech  bypasses governmental approvals and employs hundreds of computer engineers to  work via the internet with Israeli companies, allowing PA/Hamas engineers access out transactions.

UN-affiliated organizations such as UNRWA place requests for tenders via a UN  procurement organization, which, in turn, contacts every vendor in order to carry out transactions.

This study will examine: 

  • Transparency. Goods and services currently provided to the PA and GAZA  will be catalogued and cross-referenced by nature of the goods, recipient,  supplier, and associated financial transfers, including goods supplied by  Israeli vendors to the UN.
  • Cyber industries. Israeli internet companies that employ Gaza-based  engineers using the internet, virtual desktops, and cloud technology will be  examined separately.
  • Protocols. COGAT and other security arrangements that currently govern  financial transactions between Israel, the PA and Gaza will be audited.
  • Security. The study will assess the actual and potential security impact of  the work of Gaza based computer engineers employed by Israeli companies.

APPENDIX 

This study will focus primarily on the following companies.
1. Ready-Mix Industries Israel: Ytzhak Bejerano, CEO. 155 Bialik Street, Ramat-Gan.

2. Hanson Israel: This company maintains 26 technologically advanced concrete and mortar production plants, with an annual capacity of approximately 3 million cubic meters; 3 quarries with an annual yield exceeding 8 million tons of aggregates; 2 asphalt plants capable of supplying about one million tons of different types of asphalt annually; and a fleet of 130 trucks to transport concrete and building materials. 5 Jabotinski St. Ramat Gan, 5252006Israel 972-3-5764242: Eliezer Priel, CEO.

Hanson Israel LTD. (Heidelberg Cement Group), Dubi Halaban, CFO.

3. A.S.T Clean Water Technologies, LTD. 26 Dayan Moshe Rd., Haifa, 2629824.

4. Delek – Israel Fuel Corporation LTD.

British Gas Group discovered a natural gas reservoir over 15 years ago off the coast of Gaza that is similar in capacity to that of the Yam Tethys project, and this reservoir may be developed in the future and marketed both locally and to the Mari-B, which has already been largely depleted by Noble and its partner, the Israeli company Delek Group, might have fallen squarely within Palestinian claims by as much as 6,600 square kilometers of maritime territory within the eastern Mediterranean’s gas-rich Levantine Basin. The PA, however, has been reticent in asserting Palestinian claims to much of these resources.

Palestinians are almost totally dependent on the state-backed Israeli Electric Corporation (IEC), which supplies around 85 percent of their electricity. However, gas from Noa, Mari-B and, according to SOMO, the Border Field, is sold to the IEC by the Noble and Delek Group.

The regional supply also includes Gaza-Marine, with estimated reserves of 32 BCM. The field was discovered by Israel and transferred to the Palestinian Authority. Gaza-Marine is jointly owned by Shell, the Palestinian Investment Fund (PIF) and the Consolidated Contractors Limited (CCC). However, the field’s location, off the Mediterranean coast of the Hamas-controlled Gaza Strip, makes its probable development in the near-term unlikely. In the long-term, we expect that, pending appropriate political conditions, the reservoir will be developed and will serve as a source of supply to the Palestinian market to complement future gas imports from Israel.

Delek Group LTD is the ultimate owner of Delek Israel through its fully owned
subsidiary Delek Petroleum.

Delek Group LTD is a public Israeli company traded on the Tel Aviv stock exchange
under the ticker symbol DELEKG. Its controlling shareholder is Itshak Sharon
(60.51%).

Delek Israel CEO, Esther Eldan

Subsidiaries / Partners:
Wholly owned subsidiaries: Delek Natural Gas LTD., Delek P-Galilot Limited Partnership LTD., Delek Industries LTD., Delek Transportation LTD., Delek Menta Roads Retails LTD, Delek Retail Stores LTD., Shot Delek Kliot.

The company also holds 51% of Joe Gourmet Coffee, 75% of United Company for the extraction of Oil LTD.,60% of Delek-Ygal M.P.G LTD., and 15% of Kmor Shipping Services LTD. Head office: 7 Gibory Israel St. 4250407, Netanya.

5. Isa Khoury Metal Industry LTD. 3 Ha-Nekhoshet St. Beer Sheva, IL 8487503
Well known in metal and mechanical construction works in the region and expanding worldwide, with subsidiary offices in Nazareth, Bethlehem in the PA and in Aqaba, Jordan. ISA KHOURY writes in its company description that it has an “outstanding relationship with Israeli Borders authority and articulate communication skill in handling political matters between Israeli and PA entities”.
Constructed the first Gaza Power Plant in situated in Gaza with 140MW under Alstom Sweden Contract.

6. G. Willi-Food International. The Company has developed trade relationships locally, as well as in areas administered by the Palestinian Authority. 4 Nahal Harif St., Northern Industrial Zone, Yavne, 81106, Israel. Amir Kaplan, Chief Financial Officer.

7. PAZ Oil Company. The company is publicly traded on the Tel Aviv Stock Exchange under the ticker symbol PZOL.Top institutional shareholders: Clal Insurance Enterprises Holdings LTD. (6.56%), Harel Insurance Investments & Financial Services LTD (6.13%), Meitav DS Investments LTD (6.0%), The Phoenix Holdings LTD (5.18%), Menora Mivtahim Pensions and Gemel LTD (5.06%).

Subsidiaries / Partners:
Main subsidiaries: Paz Industries and Services (Oil) LTD. (100%), Pazgas (100%), Paz Lubricants and Chemicals (100%), Pazkar (100%), Paz Aviation Services (100%), Paz Aviation Assets (100%), Azomat of the Paz Group (100%), Nituv Filling Stations (100%), Paz Movil (100%), Paz Ashdod Oil Refineries (100%) and Pi-Glilot Oil and Pipe Terminals (21.5%).

Joint ventures include: Pazniv Yerid Hamizrach (50%), Gai Iron (50%), On Fuel Lubricants and Wash (50%), Kenyon Shoket (50%) and Solpaz.

The company enjoys access to the Palestinian market.

The Palestinian Authority is Paz’s largest customer, accounting for about 10% of its total revenues. In 2016, it supplied about 50% of the oil product and about 85% of the LPG (liquid petroleum gas) to the West Bank and to the Gaza Strip.

As collateral, the company holds the right to collect its payment from Palestinian tax revenues held by the Israeli government. Israel has repeatedly used its power to withhold Palestinian tax revenues as a punitive measure against the PA, in violation of both the Oslo Accords and international law.

The company has filling stations in East Jerusalem.

8. Nesher Cement. Ownership: Clal Industries (100%). Clal Industries is a subsidiary of Access Industries, a US-based holding company, owned by Len Blavatnik. Subsidiaries / Partners: Company subsidiaries include Nesher Sachar cement marketing, Taman (PPM), MP Mineral, Taavura Holdings and AvShal Investment and Trade, which owns Israel Shipyards and Nesher Environment.
Location: 2 Hahazon Street, Industrial Zone A – Ramla 72369 Israel

9. Israeli High-Tech industries that work with Gaza companies: This is something new, which does not fall under COGAT oversight and operates without a physical presence in Gaza. Essentially, this is trade in non-humanitarian products.

a. Innitel (Changed name to Deskforce, uses Gaza engineers) CEO Elie Rubin,
CTO Dan Leubitz.

b. Mellanox: Eyal Waldman, President, and CEO of Mellanox Technologies LTD.

 

UN VENDOR LIST: 

The study will examine transparency procedures concerning the goods and  services that Israeli corporations provide to the UN. The study will ask the Israeli  government to name the “end users” for these products.

Israeli companies currently on the UN Vendor List: 

Gevaram Quality Envelopes LTD

Gilat Satcom LTD

Gizra Internet Solutions LTD

Glosec Solutions LTD

Goren-Kidon International trade LTD  Hafatsa and Harkavot

Hatzor Safes LTD

HP PPS Israel LTD

I.D.E. Technologies LTD.

I.Y.Genesis Advanced Engineering LTD Iconic LTD.

IO Solutions LTD.

Isa Khoury Metal Industry LTD.

ISRAEL AEROSPACE INDUSTRIES LTD.  ISRAEL CARGO LOGISTICS (ICL) LTD.  JACKY BITTON LINE LTD

John Bryce Training LTD.

Karil International Marketing LTD

Karmi Interlab L.T.D

KNOLTECH LTD

L.A.D.M. Agencies (1998) LTD.

L.D.D. ADVANCED TECHNOLOGIES (2005) LTD LADM Agencies (1998) LTD

Lan-Lee International LTD.

LAN-TECH Systems & Communications LTD.  Layam LTD

Link-com Telecom LTD

Lotan Group International LTD

Magal Security Systems LTD

Matrix I.T. LTD.

Meprolight (1990) LTD.

MER SECURITY & COMMUNICATIONSYSTEMS  LTD.

MGS Language services

Mifram LTD

Mosah Zamir Bakal LTD

Mottech Water Management LTD.  N.A. Rosenfeld Projects LTD

NESS A.T. LTD

Netalizer LTD.

Nextcom LTD

Nibor Enterprises Israel LTD.

NICE Systems LTD.

A.S.T CLEAN WATER TECHNOLOGIES LTD  Adi Tours LTD

Aeroflame – Fire Fighting Systems LTD AGAN ENGINEERING ENTERPRISES (1988) LTD.  Aleppo International

Amos Gazit LTD.

ATID TECHNOLOGICCOLLEGESNETWORKLTD  Avner Gilad Preservation & Restoration of  Buildings LTD

B.Rimon Agencies LTD

Barlev Associates, Accountants

Bezeq International LTD

Biometrix LTD

BIRD Aerosystems

BlueBird Aero Systems LTD.

Bney Meir LTD

Brand Industries LTD.

Bynet Data Communications LTD

C&G Logistics Solutions LTD.

C.A.L. CARGO AIRLINE LTD

Carmor Integrated Vehicle Solutions LTD.  Ceragon Networks LTD.

CHROMAGENAGRICULTURECOOPERATIONSOCIE  TY LTD

Classica International LTD.

Computer C Data LTD

CueBid Inc,

Danir Systems LTD.

DELEK -ISRAEL FUEL CORPORATION LTD.  Diesel Garage Tiberias LTD

DIUK ARCHES LTD

E Geller Consulting

E.D.T. E-Drive Technology LTD

EASY LINE LTD

EITHAR INSURANCE AGENCY CO. LTD.  Elbit Systems LTD

Elco – Contracting and Services (1973) Limited Eltel Technologistics LTD

Eshet Engineering LTD.

EZPack Water LTD

Firefly LTD.

Galillee College

Gaya Automotive Industries LTD.

 

Sdema Group, LTD. (Israel)

Shladot LTD.

Somet Integration LTD

Sonol israel LTD.

SPACE-BAND

Starcom G.P.S Systems LTD.

Sunshield Safety Coating Solutions LTD  SysDo LTD

T.D. GROUP LTD

Tahal Consulting Engineers LTD. Tal Jerusalem Stonemasons L.T.D.  Tamooz Marketing Communications  Tenders System LTD.

Tractors & Equipment LTD (I.T.E) Upgrade Solutions LTD

Water-Gen LTD

Zim Integrated Shipping Services LTD.  ZIV-AV Engineering LTD

Nir Zaidfunden Consulting Engineers LTD  ODIS Filtering LTD

Ofek Aerial Photography (1987) LTD  Onset Systems Engineering LTD

Opgal Optronic Industries LTD

Ophir- Mizrachi Yosef

OrliteIndustries(Millenium2000)LTD  PALRAM INDUSTRIES (1990) LTD

PAZ OIL COMPANY LTD.

Plasan Sasa LTD

Rabintex Industries LTD

RAD Data Communications LTD.

Robogroup T.E.K. LTD.

S.B. HANDLING SOLUTIONS LTD

S.D. ADVANCED SOLUTIONS LTD

Sami Awadallah for Construction Works LTD  Scope Metals Group LTD.

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