Israeli Finance Minister Yair Lapid has decided to suspend the transfer of public funds to West Bank settlements pending a probe into their alleged misuse, his office said.

Israeli Finance Minister Yair Lapid has decided to suspend the transfer of public funds to West Bank settlements pending a probe into their alleged misuse, his office said.

Lapid's move came after it emerged that some funds earmarked for compensating West Bank communities were transferred to the settlement leadership for political activity, a ministry statement late Saturday said.

The funds were intended for security and the maintenance of schools and kindergartens.

But after it emerged the funds were "allegedly being illegally channeled to the Yesha Council, which was using the money for political activities -- including against the government -- the minister ordered to immediately cut the future fundings under this clause," the statement read.

The minister has ordered an investigation into the matter, it added.