VZCZCXRO4141
OO RUEHROV
DE RUEHJM #1049/01 1721136
ZNY CCCCC ZZH
O 201136Z JUN 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1856
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 001049 
 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
GOLDBERGER/SHAMPAINE; NSC FOR ABRAMS/PASCUAL; 
TREASURY FOR SZUBIN/GRANT/ROSE/NUGENT/DAVIS 
 
E.O. 12958: DECL: 06/20/18 
TAGS: ECON EFIN KFTN PGOV KWBG IS PTER
SUBJECT: UPDATE ON PA ZAKAT COMMITTEE REFORMS 
 
REF: A. TEL AVIV 740 
     ¶B. JERUSALEM 690 
 
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d). 
 
¶1. (C) Summary.  Palestinian Authority (PA) actions to 
control the collection and distribution of alms (zakat) have 
significantly reduced Hamas' exploitation of zakat committees 
as a source of income in the West Bank, according to the 
Deputy Minister of Awqaf and Religious Affairs (Awqaf).  At 
Prime Minister Fayyad's direction, the PA dissolved or 
restructured 92 zakat committees and established mechanisms 
to regulate zakat-related activities.  End summary. 
 
¶2.  (C) Awqaf Deputy Minister Salah Zuheika told ConGenOffs 
June 4 that PA regulations governing zakat committees were 
largely ignored until Salam Fayyad became Prime Minister in 
June 2007.  Prior to the January 2006 elections, Hamas used 
zakat committees to accumulate and spend significant funds. 
The situation became worse after the elections, when the 
Hamas-appointed Minister of Awqaf Yusuf Razqa instructed the 
zakat committees to ignore directives from his professional 
staff. 
 
Fayyad Takes Charge 
------------------- 
 
¶3.  (C) Under PM Fayyad, PA efforts to control zakat-related 
activities took on greater urgency, according to Zuheika.  At 
Fayyad's direction, newly-appointed Minister of Awqaf Jamal 
Bawatna in September 2007 established a 9-member Higher Zakat 
Committee to "control all the activities" of the zakat 
committees, and an 11-member council now manages the "Zakat 
Central Fund" to which the zakat committees direct their 
obligatory contributions. 
 
¶4.  (C) Zuheika said that all 92 zakat committees under Awqaf 
authority were dissolved in November 2007 and replaced by 9 
district committees.  District committee members were 
selected from names nominated by governors' offices, chambers 
of commerce, and municipalities.  (Note:  Fayyad has told us 
that all names were vetted by PA security services.  End 
note.)  Bank accounts of the dissolved committees were closed 
after funds were transferred to the new accounts of the 
district committees. 
 
¶5.  (C) Zuheika said that the Awqaf worked with the Ministry 
of Finance and the Palestine Monetary Authority to uncover a 
number of accounts held by zakat committees.  In one case, a 
bank in Jordan alerted the Awqaf to an account there after a 
former zakat committee member attempted to withdraw funds. 
Zuheika said banks in Jordan and in the West Bank have become 
more diligent in demanding PA-issued documentation prior to 
opening or granting access to zakat and other charity 
accounts. 
 
Still Work to Be Done 
--------------------- 
 
¶6.  (C) Zuheika said that most zakat committees possessed 
substantial assets and properties and also maintained ties to 
a variety of charitable societies, thus complicating PA 
efforts.  He noted that the zakat committee in Nablus ran six 
major institutions, including two hospitals and a dairy 
company, and had been able to disburse funds to different 
organizations without Awqaf authorization.  Zuheika stated 
that the Nablus Zakat Committee has been restructured and has 
a new head, Dr. Mohammed Hannoun, Vice President for 
Administrative Affairs at al-Najah University.  Undesirable 
members, such as Dr. Abd al-Rahim Hanabali have been ousted. 
 
¶7.  (C) Comment:  There is still work to be done to ensure 
complete Awqaf control over the restructured committees.  The 
Ministry lacks capacity and established systems to ensure 
compliance throughout the West Bank.  Former members are 
lobbying to be reinstated and exert influence on the local 
committees.  Zuheika believes that committees, forced to deal 
with pressure from previous members and Hamas activists, may 
try to make compromises at the local level, beyond the reach 
of the Awqaf.  End Comment. 
 
Hamas Response 
-------------- 
 
¶8.  (C) In response to PA actions, Hamas is seeking to 
establish new charitable committees in the West Bank and is 
 
JERUSALEM 00001049  002 OF 002 
 
 
asking its donors, both foreign and domestic, to redirect 
their contributions to these entities, according to Zuheika. 
Officially recognized committees are losing funding, and 
beneficiaries are increasingly holding the PA responsible. 
 
WALLES