Israeli Arab suspected of instigating riots after payoff

TEL AVIV — An Israeli Arab parliamentarian is being investigated on suspicion that he received funding from a millionaire close to Palestinian Authority Chairman Yasser Arafat to launch violent demonstrations in Israel.

Azmi Bishara, head of the National Democratic Alliance, has been under police interrogation that he received $500,000 from millionaire Hasib Sabr to finance what turned out to be the worst Arab unrest in Israel during the last 50 years. Sabr is regarded as close to Arafat.

The sources said the money was transferred through a bank account abroad by Sabr, who is based in Jordan and deals in banking and property. They said the money has not yet been fully traced.

The investigation of Bishara is based on an assessment by Israeli intelligence that the violent demonstrations by Israeli Arabs last month were prompted by orders from Arafat. Israeli sources said Fatah activists relayed orders and communications devices to coordinate the protests, which swept through Israel.

Aides to Prime Minister Ehud Barak confirmed that Palestinians from the West Bank participated in the Israeli Arab unrest. They said the General Security Services is monitoring the growing relationship between Israeli Arab leaders and the PA.

Last week, Barak attended a meeting with senior Israeli and GSS officials on the Arab unrest. Sources said among the proposals discussed was a crackdown on the Israeli Arab leadership and the prosecution of those suspected of incitement.

For his part, Bishara has acknowledged his relationship with Sabr. But he denied that he accepted money from the Jordanian millionaire or that the Israeli Arab protests were coordinated with the PA.

" He was in Israel," Bishara said. "I went around with him, I showed him places, but he did not pass me money. Balad [Bishara's party] is in a very difficult situation, but we know that we are being watched closely and we are being cautious. There was no coordination with the PA. In my opinion, PA officials were also surprised by the demonstrations."

Another Arab parliamentarian, Mohammed Baraka, is under investigation for inciting his constituents to violence. Baraka is said to have been accused of calling for violence during solidarity demonstration with Palestinians.

A third Arab parliamentarian, Abdul Malik Dahamshe, is also being interrogated on suspicion of incitement.