The defense establishment and the Ministry of Finance operate a secret, "extra-budgetary" fund, through which funds are transferred to the Palestinian Authority. This is another channel, which was not known until now, for the flow of budgets from Israel to the Palestinians.

The existence of the fund was revealed in a response submitted by the state to the Supreme Court in response to a petition by the 'Kohelet Forum'. A representative of the High Court

The existence of the fund is not known to any of the parties involved in the field. Just a month ago, the Knesset's Foreign Affairs and Defense Committee held an extensive discussion on payments to the Palestinians. 

The existence of the fund was not mentioned, although ten representatives of the government participated in the discussion, including Adviser to the Director General of the Ministry of Finance, Arava Alfasi, Head of the Civil Department of the Ministry of Defense, Col. Elad Goren, and legal advisers from various government ministries.

Source: Ariel Kahana - Israel Today