Prime Minister Ariel Sharon plans to resume the transfer of tax monies to the Palestinian Authority - despite objections by Israeli defense and security elements. The latter say that it is still Yasser Arafat who oversees the PA coffers, and that money given to the PA will be used to finance terror activities.



IDF Chief of Staff Lt.-Gen. Moshe Yaalon, in an appearance at the Knesset Foreign Affairs and Defense Committee yesterday, said that the mechanism by which international donations to the PA are supervised is insufficient. All the monies received by the PA eventually wind up in the same account, Yaalon said.



The Prime Minister discussed the topic today with Foreign Minister Binyamin Netanyahu, Defense Minister Sha'ul Mofaz, Finance Minister Silvan Shalom, and their ministries' respective Directors-General. Sharon, who plans to renew the payments on a monthly basis, explained that the Bush Administration is applying heavy pressure upon him to transfer the money, and that a supervisory mechanism exists to ensure that the money is not used to finance terrorism. Arutz-7's Haggai Seri quoted "elements on the right" saying that these mechanisms will be about as effective as those established to ensure that the guns given the PA would not be used to murder Jews.