The Palestinian Authority (PA) faces a possible influx of cash flow following a New York State Supreme Court ruling that unfreezes - subject to appeal - $30 million. The PA has also been pledged $59 million from the Bush administration.



Assets of the Palestine Monetary Authority (PMA) had been frozen following a case brought to the court in 2005, nine years after the 1996 terror shootings of Yaron and Efrat Ungar. Yaron, born in Brooklyn, New York, was a rabbinical student studying in Israel when he and his wife were brutally murdered. Their two orphans, babies at the time, have been brought up by Efrat's parents.



The Ungar family was awarded $30 million from the Palestinian Authority, which was found responsible for the attack by failing to meet its obligations under the Oslo Accords to prevent terror.  The assets belonging to the PMA were then frozen, until such time as it could be ascertained whether or not the PMA's money should be used to pay PA debts. 

Over the weekend, the Supreme Court of the State of New York ruled that the bank is, in fact, not connected to the political entity of the PA and cannot be held culpable for the PA’s actions. The money was thus ruled unfrozen - and will not be used to pay the Ungars.

This is not the last word, however.  Attorney Nitzana Darshan-Leitner explained to Arutz-7 that contrary to reports, the decisions is not final and that the PMA's monies are still frozen "until after we have a chance to appeal.  This is a process that could take a year and a half or more."



The Court's ruling, as of now, is that the PMA "is a separate entity from the Palestinian Authority and the money in its name... should be released." Both the PA and the PMA were created under the terms of the accords in 1994.



In addition to the unfreezing of assets, the ruling allows the PMA to operate in the United States and to make transactions worldwide in American dollars. "The PMA will now proceed to re-engage in its full range of statutory responsibilities of safeguarding monetary and financial stability and promoting economic growth," PMA Governer George Abed stated.



Bush Administration Pledges Funds to Terrorists

Two weeks ago, the Bush Administration pledged $59 million to the Fatah faction, under the leadership of PA Chairman Mahmoud Abbas.



A majority of the proposed funds will be utilized for military equipment and training, with Abbas’ Force 17 presidential guard units being the main beneficiary of the cash.



Recently, the American Congress blocked a larger pledge of $86 million to the PA by U.S. Secretary of State Condoleezza Rice because of evidence that the funds may wind up reaching the hands of terrorists.



Aaron Klein of WorldNetDaily reported that “dozens of Hamas and Islamic Jihad members were discovered the past four weeks serving in Fatah posts.”



Rice recently admitted she cannot guarantee that funds transferred to Fatah would not reach "the wrong hands."



Following the admission, Rice stated during a hearing before the House of Representatives Appropriations subcommittee that she would ask Congress for less money.



"I will request less money,” Rice stated, “precisely because some of the money that I would have requested I did not think I could fully account for."



European Union to Resume Funding PA

PA foreign minister Ziad Abu Amar expressed optimism Saturday that European aid to the PA could be renewed in the near future.



The European Union, along with the U.S., halted funding for the PA government last year after Hamas won a sweeping parliamentary majority during legislative elections.



However, since the recent formation of a joint, national unity government between Fatah and Hamas, PA officials expect that several countries will begin sending money to the Authority as soon as next month.



Abbas is set to travel to several European capitals later in April to seek funding for the entity. PA sources said that they had received unofficial promises from several European leaders that the funding would be renewed if kidnapped IDF soldier Gilad Shalit is released.