Articles


Palestinian Authority security fence bribery scandal

Posted On 06/17/04
By: Access Middle East

Palestinian contractors and government ministers are allegedly pocketing a profit from the same security fence they’re condemning.

According to reports in two Palestinian dailies, Al-Ayyam and Al Hayat al-Jadida, the Palestinian Legislative Council has called for a criminal investigation into allegations that Palestinian companies have been importing cement from Egypt on behalf of Israeli contractors. The Egyptian cement is used to build parts of the West Bank security fence, as well as new houses in settlements in the West Bank and Gaza Strip.

In an intense debate in the Palestinian Legislative Council, Palestinian Authority National Economic Minister Maher Masri was accused of negligence and wrongdoing in what was termed “the cement scandal.” Thirteen legislators voted in favor of a bill that held Masri responsible for the scandal, with six voting against it. Some legislators called for putting the minister and other top PA officials on trial.

Addressing the council, Masri admitted that some Palestinian companies awarded import licenses by his ministry had broken the law. He said that he had taken measures to stop these illegal transactions, and promised to prosecute those involved in the scandal.

The imbroglio erupted last November following reports in Egyptian newspapers that two Egyptian cement companies were exporting material to Israeli firms through Palestinian businessmen. According to the reports, the cement was going to Israeli construction companies building the security fence and new homes in the settlements.

Implicated in the scandal is PA Civilian Affairs Minister Jamil Tarifi, whose family owns the Kandil Tarifi Cement Factory, among the largest in the West Bank. Two other companies implicated in the case are the Intisar Barakeh Company for General Trade and the Yusef Barakeh Company for General Trade.

A Palestinian parliamentary commission of inquiry was formed to investigate the case. Its members visited Jordan and Egypt and interviewed the owners of the Egyptian companies, government officials, and journalists in Cairo. The team also interviewed ministers Tarifi and Masri, as well as PA Prime Minister Ahmed Qurei, PA Chairman Yasser Arafat’s advisor on economic affairs, Mohammed Rashid, and several senior officials representing various PA ministries and institutions.

The commission found that a German Jewish businessman had imported — on behalf of Israelis — about 120,000 tons of cement from the Bani Swaif cement factory in Egypt. It reported that when the Egyptians discovered that the concrete was being sent to Israel, they ordered the cement factory to cut off its ties with the German importer.

According to the commission, the German businessman turned to Palestinian companies for assistance, and they agreed to act as intermediaries.

The commission concluded that senior PA officials had received bribes to issue import licenses to several importers and businessmen working on behalf of Israelis. “This is a legal and political crime that harms the national economy and security,” the commission stated.

The commissi’s report did not refer to the Al-Quds Cement Factory in Abu Dis near Jerusalem, which has also been accused of supplying material for the construction of the security fence and settlements. The factory is co-owned by the family of the PA Prime Minister.

Hassan Khraisheh, a member of the PLC team that investigated the case, said the entire PA cabinet should be held responsible for the corruption scandal. He said he and his colleagues were not satisfied with the explanations offered by Masri and his ministry because they included many contradictions and half-truths.