Palestinian Official Thanks Morocco for Efforts to Resolve Withheld Funds Crisis

"We express our thanks and great appreciation" to King Mohammed VI as well as the "pillars of the Moroccan government for their continued efforts to resolve the crisis of Palestinian funds withheld by Israel," writes Hussein Al-Sheikh in a post on X. "We appreciate this continuous and permanent fraternal effort, which aims to support the determination and perseverance of our people on their homeland," he adds.

Since October 7th, Israel has withheld nearly a billion dollars in Palestinian tax revenues. Tel Aviv regularly accuses the Palestinian Authority of diverting the transferred funds to finance its "Palestinian Authority Martyrs’ Fund". The withholding of these funds, also justified by the Hebrew state as a retaliatory measure against the Palestinian Authority due in particular to its positions on the ongoing events, undermines not only the functioning of essential services, including the payment of civil servant salaries and the financing of hospital and educational infrastructure, but also the Palestinian economy.

As a mediator between Israel and the Palestinian Authority, Morocco is said to have engaged in discreet discussions with Israeli officials in recent weeks to explore the modalities of a gradual release of the sums owed to the Palestinian Authority under the customs tax collection agreements in force, according to consistent diplomatic sources.