Israel Says EU Payments Linked To Palestinian Insurgency

100,000 Palestinian civil servants? They don't even have a country ... yet the EU paid $70 million to employ them ... the problem is that the PA only gives these 'civil servants' Israeli currency based on an exchange rate that amounts to 3.6 shekels to the dollar, even though the actual exchange rate is 5 shekels to the dollar.

PA officials acknowledged the discrepancy in exchange rates but said the practice is used to maintain a cap on public sector salaries ... still, no word on what the PA does with their 20 percent cut but it's likely that lack of disclosure is why Israel is releasing the documents.

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