Israel freezes cash transfer to Palestinians due to Fatah-Hamas unity deal. Country’s Finance Minister Yuval Steinitz was quoted by Israeli media Haaretz, that he will hold up transfer of 8 crore 90 lakh dollars in Palestinian tax funds and customs fees until it becomes clear that funds would not reach Hamas militants. Israel collects tax funds and customs fees on the Palestinians' behalf.Palestinian Authority has condemned the move. Senior Palestinian official Saeb Erekat has said that Israel had no right to withhold Palestinian funds. He added that Israel has started a war even before the formation of the government.Last week Fatah and Hamas groups of Palestinians announced a new unity deal. Hamas, which controls Gaza, does not recognise Israel and rejects any talks with the country. The Israeli government also says it will not negotiate with a government that includes Hamas.
News On AIR | May 1, 2011 6:32 PM
Israel freezes cash transfer to Palestinians over unity deal