American duty free magnates are among leading foreign donors of Israel’s West Bank settlements.
In this March 13, 2019 photo, an Israeli flag flies on a building in east Jerusalem's Mount of Olives. The Falic family, owners of the ubiquitous chain of Duty Free America shops, fund a generous, and sometimes controversial, philanthropic empire in Israel that stretches deep into the West Bank. The family supports many mainstream causes as well as far right causes considered extreme even in Israel.
They have supported groups that are pushing for the establishment of a Third Temple for Jews at the holiest and most contested site in the Holy Land. They also have given more money than any other donor to Prime Minister Benjamin Netanyahu, a strong supporter of settlements, and have donated to other leaders of his Likud party.
However, Israel considers the territories “disputed,” and says the fate of the settlements should be determined through negotiations.through his lawyer, Simon Falic, who spoke on behalf of the family, said Jews should be able to live anywhere in the Holy Land, whether it’s Israel, Israeli-annexed east Jerusalem or the West Bank. He condemned violence and claimed none of the groups he supports do anything illegal under Israeli law.
Data on American philanthropic support for settlements is limited, mainly due to a lack of transparency requirements. But according to a past investigation of U.S. tax forms by the Israeli daily Haaretz, fundraising organizations in the U.S. raised more than $230 million for settlement causes between 2009 and 2013 alone.
The Segal foundation, operating since 2007, gave away roughly $15 million in its first decade. This foundation’s financial reports also do not outline recipients, but the AP analysis identified at least $5.6 million in donations to settlement and far-right causes by searching through the Israeli records of more than two dozen settlement organizations.
Simon Falic said that under Jewish tradition, it is customary to donate 10% of one’s earnings to charity. Falic said the reason for this is not because Panama is a tax haven, but because his brother Leon lives there, and a number of their companies are based in Panama. But the lack of transparency there makes tracking their donations more difficult.
Oded Revivi, a settler leader, described Simon Falic and his family as generous and influential, but also modest and shunning publicity. “All of these donations were entirely legal,” wrote Falic. “Any insinuation or allegation to the contrary is patently false and defamatory.” Relations between the populations are notoriously tense, and some of the Jewish leaders are followers of the late Rabbi Meir Kahane, whose “Kach” party was outlawed in Israel in the 1980s for calling for a mass expulsion of Arabs from the country. The U.S. also branded Kach a terrorist group.
Falic said he was not aware of any connection to Lehava, and said the donations, made in 2011 and 2012, were to assist needy families. He noted that he opposes assimilation and intermarriage but also rejects violence. Israeli financial records show the fund has links to several Kahane disciples, including Marzel.
“While I may not agree with everything he has said, the work we have done that has been affiliated with the Hebron community has been positive, non-controversial and enhances Jewish life in the Hebron area — which we strongly support,” he said.
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