The Hill News

In a twist that almost certainly violates U.S. law, American taxpayers are unwittingly contributing to a Palestinian sovereign wealth fund controlled in part by the terrorist group Hamas.

The entity in question -- crying for a congressional inquiry -- is the Palestine Investment Fund (PIF), which the Palestinian Authority created in 2002 to manage and distribute its money and commercial interests. Nearly a decade later, officials say Hamas has gained control over some of the fund’s key assets.

From Washington’s perspective, the conflict of interest is clear. Several U.S. organizations contribute to the PIF, including the Overseas Private Investment Corporation (OPIC), which provided 50 percent of the funding for the PIF’s Affordable Mortgage and Loan Program (AMAL), a total of $241 million. The Washington-based Middle East Investment Initiative (MEII), a non-profit where former secretary of state Madeleine Albright sits on the board, owns 15 p! ercent of AMAL.

OPIC and MEII also support the fund’s Loan Guarantee Program, as does the U.S. Agency for Internal Development, which provided $2 million for technical assistance, according to the fund’s annual report.

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