WASHINGTON — The Bush administration froze the assets Tuesday of a prominent U.S.-based Muslim charity and two overseas groups accused of financing the militant Palestinian organization Hamas. The move marked the first time the U.S. government has used its war on terrorism to intervene in the Middle East conflict.
The assets freeze prompted immediate and angry denials--and denunciations--from Muslims here and abroad, and came as FBI agents raided at least four offices of the Texas-based Holy Land Foundation for Relief and Development, seizing computer files and records. Financial authorities also froze the assets of Beit el Mal Holdings, an investment company that they alleged is controlled by Hamas, and Al Aqsa Islamic Bank, which they described as a financial arm of Hamas.
The enforcement action, which began at midnight Monday, also marked the first time the administration has moved against a U.S.-based charity in its crackdown on terrorist organizations after the Sept. 11 attacks on the World Trade Center and the Pentagon.
Bush charged that Holy Land, based in Richardson, Texas, used its tax-exempt status as a charitable foundation to raise $13 million last year, much of which ultimately went to Hamas terrorists. Authorities froze $1.9 million in Holy Land funds and said they expected to move against "several million more" dollars by early today.
While the Bush administration's self-described war on terrorism has progressed on many fronts--law enforcement, diplomatic, financial and military--until Tuesday it had focused primarily on Al Qaeda, the terrorist network overseen by Osama bin Laden that U.S. officials have blamed for the attacks.
Bush acknowledged that he was wading into politically sensitive waters by targeting the high-profile charity, potentially jeopardizing already sensitive relations between his administration and the U.S. Muslim community. But he said the asset freeze was needed, citing Hamas' claim of responsibility for suicide bombings in Israel that killed 28 people over the weekend.
Hamas One of 'Deadliest' Terror Outfits, Bush Says
Most donors to the Holy Land foundation--and perhaps even some of its officers--believed that their donations were going to relieve suffering in the Middle East, Bush said at a Rose Garden news conference, where he was joined by Treasury Secretary Paul H. O'Neill and Atty. Gen. John Ashcroft.
