
Thousands of tons of cement sold to Palestinian businessmen at below-market prices by Egypt to help rebuild communities devastated by years of war with Israel have been resold at huge profits to the Israelis. It8217;s been used in building Israel8217;s controversial separation barrier and settlements in the occupied territories, according to an investigation by Palestinian legislators.
Palestinian Authority officials have assisted in the scheme, allowing the businessmen to make millions of dollars and depriving the Palestinian government of tax revenues.
The businessmen, using permits given to them by a high-ranking member of Palestinian leader Yasser Arafat8217;s Cabinet, sold the cement to Israeli contractors at a 50 per cent profit.
In addition to aiding the Israeli projects and producing up to 5.5 million in profits, the cement arrangement cost the Palestinian public treasury as much as 1.6 million in uncollected taxes, say the investigators. They say it is unclear if the practice is continuing.
Public and international anger at corruption in the Palestinian Authority has been on a sharp rise in recent weeks; the cement sales represent the largest example of abuse to emerge so far. 8212;NYT