It's Palestinian money. If Israel would stop a voluntary donation because they don't agree with what the Palestinians might do with it, that would be their full right. But treating it like your own money (in thinking that you are entitled to have a say in how it is spent) when in fact it's not is simply theft.
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After Amnesty report on detention centers, Iraqi PM orders investigation (Reuters)
from the article: The robbery is going off without a hitch