Prime Minister Benjamin Netanyahu and Defense Minister Moshe Ya'alon agreed to use 70 million shekels ($17.8 million) from the defense budget to evacuate a Border Police base in the Beit El settlement and to build infrastructure there for 300 new homes, Channel 10 reported on Sunday.

The money had been promised by Netanyahu to Beit El settlers in return for their agreement to the state's removal in 2012 of five apartment buildings at the Ramallah-area settlement that had been built illegally on private, Palestinian-owned land.

Haaretz reported in November that Netanyahu, under pressure from Housing Minister Uri Ariel, had ordered the transfer of the money to keep his side of the Beit El deal. Then-Finance Minister Yair Lapid blocked the move, saying it was up to the government to decide publicly on such an expenditure, and not a matter for the prime minister to decide quietly on his own. Netanyahu had made the decision and kept it under wraps rather than risk the political fallout that was likely to follow. His dismissal of Lapid and takeover of the Finance Ministry last month evidently gave the Beit El deal new life.

It came about in summer 2012, when a Supreme Court petition by the anti-occupation NGO Yesh Din led the state to order the removal of five buildings, containing 30 populated apartments, that had been built without permits on Palestinian-owned land. The evacuation was carried out with the locals' consent, as a result of a pact worked out by cabinet Minister Gilad Erdan, with Netanyahu's approval.

Open gallery view Defense Minister Moshe Ya'alon and Prime Minister Benjamin Netanyahu at a cabinet meeting, August 24, 2014. Credit: Tomer Appelbaum

The deal included the transfer of government funds to expand the population of Beit El, which included the creation of temporary housing for the settlement's evacuees and the Defense Ministry's construction – which is taking place now – of 90 homes for settlers connected to Yeshivat Beit El.

Lapid slammed Netanyahu for transferring the funds to Beit El.

"The residents of Gaza vicinity communities were left without the protection of IDF troops today, but Netanyahu is busy winking at the right," Lapid said. "He transfers 70 million shekels to Beit El and builds settlements instead of solving the housing problems faced by young couples in Israel.

"As always, Netanyahu puts his narrow political interests ahead of the good of the public."