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By Rachel Ehrenfeld (16 Jan 2000)
Author of
"Evil Money" & Narco-Terrorism"
On the eve of the famous "hand shake" on the White House lawn which
rewarded
Rabin
and Arafat with the Nobel Prize for Peace, the PLO made Britain's most
dangerous
terrorist/criminal organizations list. The British National Criminal
Intelligence Service (NCIS) also reported that the PLO had world-wide
assets
approaching $10 billion and an additional annual income of about $1.5
to 2
billion, generated from illegal activities. Surprisingly, the report
was not
picked up by the media. Instead, it was Arafat's claim that the PLO was
broke, in need of massive financial aid, that made the headlines. Yet,
it
was no secret that Arafat and the PLO had money. Already in 1990, the
CIA
estimated that the PLO had between eight and
fourteen billion dollars worth of assets.
Instead of donors demanding that the PLO account for the hundreds of
millions of
dollars they extorted, were given, or otherwise acquired, legally or
illegally, throughout the years, Arafat and his organizations were
given
more, which they have spent: at least one billion dollars since signing
the
"Peace Accord". Even now, the PLO's unwillingness to account for the
money
and the available documentation of their widespread corruption and
misappropriation of funds, does not deter the donor
countries and organizations. In an inexplicable manner, they keep
throwing
money at
the PLO.
It is not as if there have been no warnings that the protestations of
lack
of funds should not be believed (for example the Saxton Report, the
Wall
Street Journal Europe, December 2, 1993). Off the record law
enforcement
sources in Britain have stated that since 1993 PLO illegal activities
have
all but increased. Following the 1993 Wall Street Journal Op-ed, the
Chairman of the Committee on International Relations at the House of
Representatives requested a review of the PLO’s finances by the General
Accounting Office (GAO). The GA O, despite very little help from the
CIA and
the State Department, and the British suddenly refusing to meet with
their
investigator while he was in London, completed their report which was
submitted in November, 1995. It is, for secret reasons, secret. There
has
been a serious
cover-up, despite the appalling criminality of the PLO - and its
documentation. The sums involved from illegal activities are clearly
vast.
Historically, the PLO has had eight principal sources of income:
1. Official contributions from Arab states;
2. The Palestinian Liberation Tax Fund -- a 3.5 -to-7% tax on
Palestinian
workers in Arab states;
3. Income from investments; 4.Donations from wealthy Palestinians and
various philanthropic organizations;
5. Extortion ("protection" charges for companies or states from
terrorist
operations);
6. Illegal arms deals;
7. Drug trafficking;
8. Fraud and other criminal activities.
The PLO has a long, sordid, and continuing involvement in
narco-terrorism.
Its official decision to use the drug trade to its advantage was made
six
months after its expulsion from Beirut. Faced with a growing financial
crisis stemming from the Lebanon war, the PLO convened its Finance
Committee
in a secret emergency session in Algiers on February 20, 1983. Under
the
chairmanship of Yasir Arafat, the committee decided to broaden the
PLO's
activities in international drug trafficking in order to raise badly
needed
funds. As stated by Sallah Dabbagh, then PLO treasury chief, "...the
entire
future of the PLO operation for liberation, may hinge on our exporting
more
drugs throughout the world". The PLO's drug connection was
documented especially by British reporters like Brian Freemantle
(former
Foreign Editor
of the Daily Mail in ‘‘Inside the World Drug Trade’’ (1985), and James
Adams
(Sunday Times)
in ‘‘The Financing of Terror’’ (1986).
The traffic in arms and drugs has been assisted by airport investments.
The
PLO owned duty-free stores at the Jomo Kenyatta Airport in Nairobi and
the
infamous Murtala Mohammad International Airport in Lagos, Nigeria. It
purchased interests in airlines from the Maldives to Nicaragua. These
holdings gave it a base for forged travel documents and airline tickets
as
was documented in the Task Force and Unconventional Warfare, US House
of
Representatives' Republican Resource Committee (October 4, 1991).
Whatever measures the World Bank and IMF have undertaken to ensure
transparency,
proper accounting and auditing (through PECDAR for example), they have
failed to break the pre 1993 modus operandi which has been maintained
by
Arafat for his gain at the expense of relieving the poverty of ‘‘his’’
people. His own accounts are subject to no scrutiny. Opportunities for
personal enrichment have actually increased. According to a World Bank
source, requesting anonymity, "Arafat wants the world to pick up the
tab for
whatever he claims the expense to be, yet refuses to submit a detailed
account." Yet he controls personally the PA funds. A letter dated
November
23, 1996, from Dr. Ahmad Yazagi, the Executive Director of Youth and
Sports
Activities for the PA, to Arafat, requested $10,000 for his offices
ongoing
activities. On the letter, Arafat scribbled "Treasury, pay $7,000 (Dec.
13,
1996)."
This letter is an example of how the PLO is running the PA. Neither the
World Bank
nor the IMF dictates the fiscal activities of the Palestinian
authorities.
The World
bank was side-stepped by the opening of an unaudited Fund B. It is
Arafat
who makes
the decisions.
Huge commissions often topping 50% are raised for Arafat on Palestinian
orders for goods. The monopoly system has been well documented in the
Israeli press. The civil and military elites are bribed to preserve
Arafat’’
s control over the territories. A company called "Behar," run by his
"Economic Advisor," Muhammad Rashid, controls over 65% of the
charitable
organizations, including the biggest in Gaza. A further unscrutinized
account has been found in Bank Leumi in Tel Aviv. NGOs’’ receipts have
declined since the PA has taken over.
The international media, organizations, and donor governments all seem
to
have been
struck by "wilful blindness." The silence around it appears to emanate
from
some irrational anxiety that cleaning house will signify the end of the
PA
and Arafat's leadership, which in turn will cause a breakdown in the
"peace
talks" in the Middle East. Instead of helping the Palestinian people to
build democratic institutions and develop a free market system, the
West
continues to promote Arafat's Kleptocracy which continuously extorts
money
and violates agreements.
Thus the world has continued to shower Arafat and his corrupt
leadership
with money
to the detriment of his people (at least a billion Dollars out of a
projected $2.4 have already been donated) and so the question that
looms
large is: why does it do so, despite the condemning evidence?
Visit the Middle East Update Website
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