Jerusalem court orders seizure of NIS 160 million in frozen PA funds in terror victim compensation case

Jeremy Sharon is The Times of Israel’s legal affairs and settlements reporter

Palestinian Authority President Mahmoud Abbas delivers a speech during an extraordinary Parliamentary Meeting on Palestinians, at the Turkish Parliament in Ankara, Turkey, Aug. 15, 2024. (AP/Ali Unal)
Palestinian Authority President Mahmoud Abbas delivers a speech during an extraordinary Parliamentary Meeting on Palestinians, at the Turkish Parliament in Ankara, Turkey, Aug. 15, 2024. (AP/Ali Unal)

The Jerusalem District Court issues a temporary seizure order for NIS 160 million ($43 million) against Palestinian Authority funds frozen by the government, in response to a lawsuit by the families of Palestinian terror victims demanding compensation from the Palestinian governing body for supporting and encouraging such violence.

A new law passed in March this year allows victims of Palestinian terrorism and their families to sue the Palestinian Authority for compensation, since the body pays monthly stipends to Palestinians terrorists and their family members.

Under a law from 2018, the Israeli government deducts the sum of money distributed by the Palestinian Authority in terrorist stipends from the tax funds Israel collects and transfers to the PA.

Some NIS 2 billion has been accumulated in frozen funds from the PA’s terrorist stipend program.

The original compensation suit, filed by the Arbus, Kedem, Tzur law firm, was submitted on behalf of 78 victims of Palestinian terrorism and the NIS 160 million addresses their claims.

But some 200 more victims and the family members have since joined the suit, meaning that a further seizure order covering their claims could be issued by the court in the coming days.

Among those party to the lawsuit are family members of victims of the October 7 massacres committed by Hamas and other terror groups.

Attorney Barak Kedem says it will take several more months before the case comes before the court in a hearing.

“The court’s decision to seize huge sums of money from the Palestinian Authority is an important first step on the way to the transfer of terrorist financing funds for the benefit of the victims of terrorism and an important contribution to the fight against terrorism,” say Kedem and Arye Arbus in response to the decision.

The Palestinian Authority filed a petition to the High Court of Justice in July against the legislation allowing Israeli citizens to sue it for compensation, but the attorney general rejected its standing to file such a petition, while the justices of the court expressed skepticism as to the validity of the petition during a hearing in August.

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