A Reuters investigation revealed that the Israeli government granted money and licenses to two settlers working on constructing prefabricated homes that will be used to establish new settlement outposts in the West Bank, in addition to obtaining permits and other government contracts.

According to the investigation, the “Libby Construction and Infrastructure” company, owned by settlers Eliav and Harel “Koko” Libby, is working to establish a new factory to produce prefabricated facilities that can be installed quickly and at a lower cost in settlement outposts.

The prefabricated homes are transported from an industrial complex located on a hill near the Shilo settlement to various areas of the West Bank, where they are used to establish new outposts around Palestinian villages. The investigation revealed that the Israeli government granted the Libby family a license for the new factory, grazing permits, and an agricultural grant.

The anti-settlement organization Peace Now said that about $1 million in funding from the Ministry of Agriculture had been approved for the settlement outposts, while the government approved additional funding worth $1.3 million for an organization closely linked to the Libby family.

The investigation also showed that the Israeli Ministry of Defense hired the Libby family to carry out work that included the demolition of Palestinian homes in the Gaza Strip, while Reuters journalists monitored at least five warehouses surrounded by rows of prefabricated homes and building materials.

The mechanism for establishing the outposts is based on transferring one or two ready-made homes to lands in the West Bank without official approval, before settlers populate them and begin using the surrounding lands for grazing, agriculture, and building fences and roads.

According to the investigation, since 2023, the company has contributed to the establishment of at least 9 new agricultural hotspots.

“Peace Now” says that settlers established 184 unlicensed outposts during the three years ending in 2025, while the organization and the Palestinian government estimate the number of outposts currently in place at about 410. Reuters also verified the existence of 30 outposts established during the past year through field visits and satellite images.

In the Palestinian village of Duma, the head of the village council, Suleiman Dawabsha, said that settlers took control of water sources, damaged electricity supplies, and took control of about 700 hectares of land. Residents also reported that the establishment of the “Giboray David” outpost prompted 11 Bedouin families of shepherds to leave last March.

According to the investigation, the Israeli government recognized at least three outposts established by the company. The United Nations and the international community consider the Israeli settlements in the West Bank to be in violation of international law, while Israel rejects this position. Outposts established without prior approval are also illegal under Israeli law.