Yasser Arafat transferred millions of dollars in international aid and taxes transferred to the Palestinian Authority by Israel to purchase large quantities of weapons, the PA chairman's former financial aide, Fuad Shubaki, has told the Shin Bet (Israel Security Agency). Some of the Israeli money, Shubaki told his investigators, was also used to fund Palestinian terror groups.
Shubaki was apprehended two months ago during an IDF raid on the Jericho prison where he was being held together with Ahmed Sa'adat - leader of the Popular Front for the Liberation of Palestine - and the other assassins of former Israeli tourism minister Rehavan Ze'evi. Prior to his imprisonment in Jericho, Shubaki served as the chief financial officer for the Palestinian security forces and as such was the mastermind behind the Karine A weapons ship caught by the IDF loaded with advanced weaponry in the Red Sea in 2002 as it was making its way to the Gaza Strip.Under Arafat's direction, Shubaki, 64, told his interrogators, high-ranking PA security officials were involved in manufacturing and purchasing weapons in addition to funding terror groups in their war against Israel.
Shubaki estimated that $7-10 million were used every two years to purchase arms for the Gaza Strip, and another $2 million were spent on weapons for the West Bank. The money, he said, came from international aid to the PA, tax money Israel routinely transferred to the PA and taxes collected in the Gaza Strip. Shubaki confessed to involvement in the purchasing of weapons for the head of the Tanzim terror group in Gaza, used in attacks against military installations and Israeli settlements in the Gaza Strip.
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