Under the radar: Israeli government transfers NIS 700 million for Gaza aid

The government transferred hundreds of millions of shekels to the "security system" – funds that were in fact designated for the humanitarian aid mechanism in the Gaza Strip, according to a Kan News report that aired on Wednesday evening. In response to the report, the Prime Minister’s Office (PMO) and the Finance Minister’s Office stated, “The State of Israel is not funding humanitarian aid for the residents of Gaza.”

The question of who is financing the aid mechanism has raised many concerns in recent weeks. The offices of Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich denied that Israel was funding the effort, but it now appears that the government approved the transfer of hundreds of millions of shekels at the beginning of last month, without specifying the intended purpose of the funds.

The term “security system” was deliberately left vague, whereas decisions of this kind typically specify which ministry the budget is allocated to and for what purpose. Various sources who spoke with Kan said the target was indeed the aid mechanism, and that the decision was carried out “under the radar” in an attempt to conceal it from the public.

The funding source for the money was a broad government budget cut, including reductions in civilian services – such as education, welfare, healthcare, and transportation. The government decision effectively reversed a previous decision on budget cuts in these social services, allowing the reallocation of the funds to the aid mechanism.

In response to the publication, the PMO and the Finance Minister’s Office reiterated, “Even tonight, the State of Israel is not funding humanitarian aid for Gaza.”

Opposition leader Yair Lapid shared the Kan News revelation on his 𝕏 account, writing, “Remember when I said this last week in the Knesset plenum and the Prime Minister’s Office denied it?”

About a week ago, Lapid hinted that Israel was indeed funding aid to Gaza through two shell companies located outside of Israel. He claimed that the money being sent to Gaza was essentially Israeli taxpayers’ money. Prime Minister Benjamin Netanyahu’s spokesperson denied the allegations at the time, stating, “Israel is not funding humanitarian aid to the Gaza Strip.”

“Our job is to ask the government hard questions,” Lapid said. “Is the State of Israel behind the two shell companies established in Switzerland and the United States – GHF and SRS – to organize and finance humanitarian aid in Gaza? Is it Israeli taxpayers’ money that is now funding humanitarian aid? Is it possible that Israel’s security services were sent by the Prime Minister and Finance Minister to transfer Israeli funds abroad, only for them to return to Gaza as humanitarian aid?”

In his remarks to the Knesset, the opposition leader said, “If our tax money is already buying humanitarian aid, paying for food and medicine for children in Gaza, then let’s use it to our advantage on the international stage. For once, let’s make the global headlines with something good that Israel has done in Gaza. Maybe Ben Gvir and Strook won’t like it, and maybe Smotrich is afraid that people will find out he transferred the money – but the money has already been sent. It’s good for Israeli public diplomacy, good for our foreign relations, and even good for Jewish values.”