Digging Deeper: Discovering the Truth of Palestinian Finances

"Palestinians Get 2nd Try in Terror Suit, But at a Price," B1 (B5), Monday 9/8/08
By Benjamin Weiser

The article discusses the merits of a U.S. lawsuit brought against the Palestinian Liberation Organization (PLO) and the Palestinian Authority (PA) for the murder of American Aharon Ellis. The plaintiffs, Ellis' family, claim that the Palestinian terrorist, who killed five others in the shooting at a Bat Mitzvah celebration in northern Israel, orchestrated the attack with the support of the PLO and PA.

Overall, this piece is quite informative and concise, providing a clear synopsis of the case. Initially, the PLO and PA refused to defend the case on its merits, resulting in a default judgment of $192.7 million in favor of the Ellis family.

Recently, however, the Palestinians chose to reengage themselves in the case. The presiding judge of the Federal District Court in Manhattan has given the Palestinian defendants a second chance based on "their arguments that they had undergone significant changes in political leadership, and, as a result, had adjusted their legal strategies." While the newfound moderation of the PLO and PA is quite questionable, the judge is still "requiring that the Palestinians post a bond of $192.7 million so that if they lose again, the damages would be paid."

The defense lawyers claim such a sizable bond is impossible given that this sum would be "10 percent of the annual budget of the entire Palestinian Authority" and that the defendants are already "teetering on the verge of bankruptcy."

This response, in turn, raises two larger issues in the context of the case and in the article:

What are the finances of the PA (i.e. Are they as bankrupt as they claim or do they hold other assets [As Arafat did]?)?

What is done with the finances of the PA, much of which the Western community donates (i.e. Does, or has, any of this money gone to supporting terrorist activity against Israel?)?

The author does an admirable job in digging into these serious questions. As the case develops further, hopefully it will provide the American public with clearer answers.