JERUSALEM, Feb. 17 (Xinhua) -- The Israeli cabinet said on Sunday that it was freezing the transfer of about half a billion of shekels (138.22 million U.S. dollars) to the Palestinian National Authority (PA).

The Security Cabinet issued a statement saying the decision followed a law passed by the Knesset (parliament) last July, calling the government to withhold these funds. The law was approved in response to payments that the PA transfers to families of prisoners jailed in Israel over attacks of Israelis.

The cabinet said Israel may confiscate additional funds. Israeli Prime Minister Benjamin Netanyahu instructed the defense forces to "examine further payments that the PA pays in connection with terrorism, terrorists, and their families."

Israel collects customs duties on goods exported to the Israeli-occupied West Bank and Gaza Strip via Israeli ports and then transfers the funds to the PA.

The move comes amid calls by right-wing leaders to withhold Palestinian funds in the wake of the killing of an Israeli young woman by a Palestinian man earlier in February.

The move also comes amid a pre-election period in Israel, as Netanyahu and other ministers are seeking to be re-elected on April 9. Enditem

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