Following the Israeli closure of PLO offices operating illegally in Jerusalem and its eastern suburb Abu Dis, the spokesman for the Coordinator of Gov\'t Activities in the Territories released a statement exempting one company from the shut-down order: \"Employees of PalTel, the Palestine Telecommunications Company, will be given permission to enter the company\'s Abu Dis office compound in coordination with security officials on site.\" What was the reason that this one company was being allowed to return to the premises? The official statement continued: \"It is not the intention of the defense establishment to disrupt the commercial business activities of the company. It wishes to permit normal management of economic-commercial related issues.\"
Observers now wonder if there were other reasons for singling out PalTel for exemption from the closure orders. Investigative journalist David Bedein notes that the Palestinian Telecommunications Company has very powerful Israeli patrons. A year ago, in June 1999, Paltel received a critical infusion of cash from a venture capital fund founded the year before by Israeli Foreign Minister Shimon Peres, Yasser Arafat and the President of the World Bank. The Peace Technology Fund, according to press reports at the time, initially invested nine million dollars in the company, a 3.3% stake. Others with an interest in the continued operation of the telecommunications company are the Peace Technology Fund\'s main investors, including Daimler Benz of Germany and Israel\'s Teva Pharmaceutical Industries and Clal Industries. Paltel, with the help of the Fund, quickly became one of the largest companies in the Palestinian Authority. As Liora Florentin, a General Manager of the Fund, said at the time of the investment, \"We view the investment in Paltel as having huge potential, as infrastructure investments in the Palestinian Authority are growing rapidly.\"
Essentially, though, the investment in Paltel is an investment in the interests of the PLO. The extent of the PLO monopoly over the Arab economy under its control is evidenced by Paltel\'s exclusive right to provide telecommunications services under PA jurisdiction. Two years prior to Paltel obtaining exclusivity, the Palestinian Authority signed agreements with AT&T and ITI allowing them to compete for provision of telecommunications services in the PA areas. The disenfranchised companies sued for damages in US federal courts and were awarded $18 million. It should not have surprised the American companies, though, as other Paltel shareholders include the Cairo Amman Bank, the Arab Bank of Ramallah, and Padico, a Palestinian Arab investment firm in control of most of the PA economy and well-connected to PLO leaders.
Paltel initially worked in harmony with the Israeli telecommunications company, Bezeq, in provision of its services. In February 2001, Paltel severed its ties with Bezeq and tried to obtain a separate international dialing code for the Arab-populated sections of Judea, Samaria, Gaza and Jerusalem. A Paltel press release states, \"The compromise that the Palestinians are suggesting would allow Paltel to operate as a company in an independent state.\" Israel has not given her approval to the proposal.
Observers now wonder if there were other reasons for singling out PalTel for exemption from the closure orders. Investigative journalist David Bedein notes that the Palestinian Telecommunications Company has very powerful Israeli patrons. A year ago, in June 1999, Paltel received a critical infusion of cash from a venture capital fund founded the year before by Israeli Foreign Minister Shimon Peres, Yasser Arafat and the President of the World Bank. The Peace Technology Fund, according to press reports at the time, initially invested nine million dollars in the company, a 3.3% stake. Others with an interest in the continued operation of the telecommunications company are the Peace Technology Fund\'s main investors, including Daimler Benz of Germany and Israel\'s Teva Pharmaceutical Industries and Clal Industries. Paltel, with the help of the Fund, quickly became one of the largest companies in the Palestinian Authority. As Liora Florentin, a General Manager of the Fund, said at the time of the investment, \"We view the investment in Paltel as having huge potential, as infrastructure investments in the Palestinian Authority are growing rapidly.\"
Essentially, though, the investment in Paltel is an investment in the interests of the PLO. The extent of the PLO monopoly over the Arab economy under its control is evidenced by Paltel\'s exclusive right to provide telecommunications services under PA jurisdiction. Two years prior to Paltel obtaining exclusivity, the Palestinian Authority signed agreements with AT&T and ITI allowing them to compete for provision of telecommunications services in the PA areas. The disenfranchised companies sued for damages in US federal courts and were awarded $18 million. It should not have surprised the American companies, though, as other Paltel shareholders include the Cairo Amman Bank, the Arab Bank of Ramallah, and Padico, a Palestinian Arab investment firm in control of most of the PA economy and well-connected to PLO leaders.
Paltel initially worked in harmony with the Israeli telecommunications company, Bezeq, in provision of its services. In February 2001, Paltel severed its ties with Bezeq and tried to obtain a separate international dialing code for the Arab-populated sections of Judea, Samaria, Gaza and Jerusalem. A Paltel press release states, \"The compromise that the Palestinians are suggesting would allow Paltel to operate as a company in an independent state.\" Israel has not given her approval to the proposal.