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The Palestinian preventive security apparatus, under Mohammed Dahlan, recently seized $3 million sent from Iran for the Islamic Jihad organization in the territories.

The money, which arrived indirectly via Arab countries, was confiscated by the Palestinian Authority (PA), and then distributed to charity organizations.

In the seven weeks since agreeing on the cease-fire, the PA has taken steps to reduce incitement against Israel and to tighten its control over PA funds. However, the control is not complete and PA chairman Yasser Arafat and his security services have their own funds.

Israeli sources say the Palestinian leadership sees these acts as fighting terrorism. Mahmoud Abbas (Abu Mazen) and Security Minister Dahlan have not carried out any real action against the terror organizations. Even the "90-day plan" on security issues that Dahlan presented to the United States is hardly being implemented, except for organizational steps, the Israeli sources say.