Lt.-Col. Shlomo Dror, speaking with Arutz-7's correspondent Haggai Huberman, confirmed the report, and said that 400 trucks enter every day with food and medicines.
Foreign Minister Tzippy Livni yesterday told American envoy David Walsh that the Hamas-led PA government refused Israel's offer of 50 million shekels worth of medicines, instead demanding that Israel provide the cash equivalent from the tax revenues Israel began withholding since the Hamas took over the PA.
Israel's decision is to use the money for humanitarian purposes, and not to transfer money that is likely to be used to fund attacks against Israelis.
Several weeks ago, Israel turned to the PA, via the World Health Organization (WHO), in an attempt to find out which hospitals they should provide with medical equipment and medicines. WHO officials came back with an answer a few days ago, saying that the PA is not interested in receiving medicines, but rather cash.
"The PA's position shows that there really is no health crisis in the PA, contrary to its claims," Israeli security sources said, "and that they want to use the money for other things."
The European Union is attempting to expand the definition of "humanitarian needs" to include all welfare and social services, such as education, social workers and psychologists. Many in Israel, on the other hand, feel that whatever money is given for these purposes will simply free up other PA monies to be used for terrorism and related causes.