February 20, 2003
Palestinian Preventative Security Service Funding of Terrorism
(Communicated by Israeli Intelligence Sources)

Documents found recently in the Gaza offices of the Palestinian Preventive Security Service (PPSS) expose not only the corruption and mismanagement of the Palestinian Authority, but also reveal the channeling of PA funds toward the financing and implementation of terrorist operation.

Among the documents found during the IDF's Operation Guardian Fortress in Gaza were hundreds of receipts along with photocopies of cheques and other documents. These relate to the transfer of sums of money, ranging from hundreds of dollars to hundreds of thousands of dollars, to senior and lower-level operatives and other elements.
These funds, originating from the budgets of the Preventive Security apparatus and its independent sources of income were used not only for preventive security (such as intelligence gathering and preventive operations) but also to finance and initiate terrorism.

Funds were also transferred to financial concerns in which the Preventive Security leadership has interests, as well as to payments providing "assistance" to the heads of the Preventive Security apparatus, their cronies and those favoured by the Preventive Security authorities (including senior political figures). The payments were transferred directly by the Preventive Security apparatus, and occasionally by the Palestinian Ministry of Finance.

On occasions, this occurred with Arafat's personal approval and sometimes without his direct involvement. At times, the funds were transferred directly to the beneficiaries, and at other times, they received the payments through an intermediary.

An analysis of the cheques, receipts and documents point to wastage, corruption and misuse of Palestinian Authority funds for the direct and indirect financing of terrorism.