Palestinian
Cement Scandal
By Khalid Amayreh
06 August, 2004
Aljazeera
The
Palestinian Authority's general prosecutor has begun an extensive investigation
into the so-called Egyptian cement scandal.
It is claimed that
two Palestinian companies imported Egyptian cement and diverted it to
Israel where it is believed it was used in the building of Israel's
separation wall.
A number of senior and junior PA officials may be indicted for their
involvement in the affair which has already caused huge embarrassment
to an increasingly beleaguered Palestinian Authority and seriously undermined
its credibility, if not legitimacy.
The officials allegedly received grafts, bribes, kickbacks, or payments
in return for their "silence", falsifying documents and facilitating
the "deal".
Palestinian Authority leader Yasir Arafat, who is facing stiff and growing
internal opposition to his autocratic style of governance, has remained
tight-lipped about the scandal.
Last week, he told visitors from the West Bank that the affair was giving
Israel and the US additional ammunition to attack and vilify the current
Palestinian leadership.
The scandal, however, continues to snowball. It has galvanised the Palestinian
public, to voice its widespread indignation at the PAs failure
to tackle corruption.
This indignation, say many observers, may evolve into violence as was
seen recently in the Gaza Strip.
Redevelopment
The Egyptian cement affair began nearly a year ago when Egypt offered
to sell the Palestinian Authority 420,000 tonnes of high-quality cement
at symbolic prices ($12-15 a tonne) to prop up the Palestinian economy,
badly battered by sustained Israeli invasions over the past four years.
The cement was to be used to rebuild Palestinian homes and buildings
destroyed by the Israeli occupation army, particularly in the Gaza Strip
where entire neighbourhoods in Rafah in the south were bulldozed recently.
However, instead of dealing honourably with the goodwill gesture, a
number of corrupt and well-connected businessmen, most likely in coordination
with influential figures within the PA, were obtained a licence to import
the cement from the PA Economy Ministry, headed by Mahir al-Masri.
The cement, which included several large consignments, was trucked through
two border crossings between Sinai and the Gaza Strip. However, instead
of going to the Gaza Strip, the cement ended up in the Israeli town
of Ashkelon.
Counter claims
Al-Masri claims that the amount of imported cement, the subject of the
controversy, did not exceed 65,000 tonnes.
The Palestinian Legislative Council carried out an investigation after
an Egyptian newspaper, Al Arabi, disclosed business links between an
Israeli businessman of German descent and a number of Palestinian companies,
some affiliated to the PA.
One of the main authors of the investigation, Hasan Khraisha, is a deputy
speaker of the council and a frequent critic of Arafat's autocracy.
He told Aljazeera.net he had found authentic records showing the consignments
amounted to 420,000 tonnes of high-quality cement.
He pointed out that the bulk of this amount (390,000 tonnes) ended up
in Israel and was sold to an Israeli businessman who in turn resold
it to Israeli contractors who were building the separation wall in the
northern West Bank.
Reports
According to a report published on 31 July by the Ram Allah-based daily,
Al-Ayyam, the PA businessmen who sold the cement to the Israeli businessman
made profits ranging from $8m to 9m dollars. The businessman reportedly
made similar profits selling the cement to Israeli contractors at $80
to $100 per tonne.
"This is a national treachery. It is a treasonous act to help build
the racist wall at a time when Palestinian children are risking their
lives and dying protesting the evil structure," said Khraisha.
According to the legislative council report, three firms were involved.
The main suspect is the Tarifi Company for Concrete Mix (TCCM), headed
by Jamal Tarifi, a brother of Jamil Tarifi, the PA Minister of Civilian
Affairs, responsible for liaising with Israel.
Prior to the creation of the PA in 1993, Tarifi occupied a prominent
position in the Israeli army's "civil administration" in the
West Bank, and, thanks to his privileged contacts and connections, was
able to amass huge wealth, winning highly profitable contracts from
the Israeli occupation government in the West Bank.
Special treatment
And through the years, the Tarifis developed extensive business relations
with Israeli firms, enabling them to make millions of dollars in profits,
making use of the "special treatment" they received at Israeli
checkpoints and roadblocks.
Hence, it was not a coincidence that the licence to import the cement
from Egypt was prepared and signed rather surreptitiously at Jamil Tarifi's
home in Ram Allah, as was revealed by the PA comptrollers Jarrar al-Kidwa.
It is now clear that PA chairman Arafat knew about the affair.
According to Khraisha, on 9 November a letter was sent to Arafat by
al-Kidwa, informing him that an "open-ended" licence was being
issued to the Tarifis to import the cement from Egypt.
Another letter reportedly notified Arafat that large amounts of the
imported cement were being diverted to Israel by truck.
For reasons still unknown, Arafat refused to act, and al-Kidwa, whose
appointment in his job has not been approved by the Legislative Council,
refused to reveal to the council all subsequent official correspondences
with Arafat's office.
Wider issues
Officials in Arafat's office refused to answer questions on the affair,
arguing that the matter was being handled by the prosecutor general.
However fears remain that the matter will be whitewashed over as were
numerous previous corruption scandals.
Notwithstanding its gravity, the current scandal represents only a small
part of the huge corruption phenomenon inundating the Palestinian Authority.
Indeed, one could argue that corruption, with its various manifestations
and expressions such as bribery, nepotism, favouritism, cronyism, kickbacks,
pitfall profits and embezzlement and theft, served as the modus operandi
of the PA operations since day one.
The phenomenon, say those who know, is so overwhelming that it will
take Palestinian society many years to resolve, supposing there is the
will and power to do so.