Auditor’s Report: The Likud Diada – Prohibited Donation

The Likud Diad in Eilat in 2018

(Meir Ohayon)

Criticism of the Likud dyad, for the third time: The State Comptroller, Dr. Matanyahu Engelman, states Like his predecessor in office Because The Likud dyad event, which is held almost every year in Eilat, is a prohibited contribution. He also referred to the use of the prime minister’s residence in Jerusalem as a political event, but believes that this is not against the law. The words were written in a special report, which relates to the conduct of the factions in the Knesset in 2018, during the 20th Knesset, and in the primaries in the various parties in the run-up to the 21st, 22nd and 23rd Knesset elections.

Regarding the Likud-led primaries, which were held in December 2019 and in which Prime Minister Benjamin Netanyahu and Gideon Saar – who moved to head the “New Hope” party – competed, Comptroller Engelman referred to the use of the Prime Minister’s House on Balfour Street for a political conference. The Comptroller wrote that section 28 of the Act prohibits the use of the assets of an audited entity in connection with pre-election propaganda. However, he noted, another clause allows for “use of assets made available by the state to a minister, deputy minister or MK.” The Comptroller wrote that according to the principle of equality, the section also applies to assets made available to the Prime Minister, including the Prime Minister’s Residence.

  The Likud dyad in Eilat.  archives  The Likud dyad in Eilat.  archives

The Likud dyad in Eilat. archives

(Photo: Meir Ohayon)

The Comptroller further states that the use of a clause in the procedure “Participation in the expenses of an incumbent Prime Minister” allows the use of the residence for party needs, subject to bearing costs, and states that “the state will not bear economic expenses involved in hosting meetings and events of a party nature in the official residence.” Comptroller Engelman further noted that “the use of the Prime Minister’s Residence for party needs can be made proportionate and reasonable – and it is clear that in this matter a distinction must be made between holding meetings attended by a small number of participants and holding a conference of about 300 participants.”

Comptroller Engelman, who determined that no deficiencies were found in the audit of the accounts, concluded: “In view of the aforesaid, The use of the Prime Minister’s Residence to hold multi-participant propaganda conferences should be avoided“In this matter, I wrote down the candidate’s clarification before me, that this was done after receiving legal advice, that he participated from his budget in the cost of the conference and that he would avoid it next time.”

In another matter, the Comptroller found that it was once again clear that assistant ministers who ran in the primaries as well as parliamentary advisers to the Knesset were involved in the primary election campaign and worked to promote the candidacy of those ministers and Knesset candidates, without this being reflected in the candidates’ accounts.

The Comptroller commented that the conduct described has implications with regard to the financing of the preliminary election procedures and the reporting obligations of the candidates regarding the said election campaigns.

In another chapter, which dealt with parties, the comptroller Engelman – like his predecessor in office, retired judge Yosef Shapira – referred to the great event that the Likud holds every year in Eilat. Comptroller Engelman wrote: “Similar to the previous current periods, the Likud event took place in the current period as well. This was discussed in previous reports, in which it was stated that the direct and distinct connection between the Likud faction and the event is reflected in various characteristics, including the faction’s name and symbols. “Of the faction’s elected representatives, conveying messages of faction support throughout the event and the link made at the public level, including media coverage between the faction and the event, the faction had to give expression to the event in its accounts, and the contribution inherent in the law is required to be examined.”

Therefore, the Comptroller wrote that “in view of the aforesaid, I determined that even in the current period, the Likud faction did not meet the restrictions set forth in the law regarding receipt of donations, due to the acceptance of the contribution inherent in the existence of the Likud event, which is a prohibited donation.”

Minister Amir Ohana of the LikudMinister Amir Ohana of the Likud

Minister Amir Ohana of the Likud

(Photo: Meir Ohayon)

Engelman stressed that the previous report of the comptroller Shapira, which included the determinations on the Likud dyad, was published after the Likud dyad event took place in January 2018, during the current period, so that the faction did not have enough to act on it. Take various actions to sever ties with the event, including sending letters from the faction’s legal counsel to the event organizers, in which they were required to pledge that in subsequent events attended by faction members, as well as in their various media publications, they will not use “Likud name at all … and in general This … as part of the expression Likud … and any other symbol of the Likud movement “, nor will it be possible to” distribute Likud function forms during the events … and of propaganda material of the Likud and / or its members seeking to run in the elections of the movement’s institutions and / or On its behalf, such as the Knesset or the local authorities. ” In addition, a meeting was held between members of the faction and the organizers of the event to clarify the issue. “

But it was not only about the Likud that Engelman had criticism. In the chapter dealing with the Balad faction, it was found that “similar to the previous current periods, the Balad faction also included in its accounts expenses for a summer camp for children. The issue has been discussed extensively in previous reports, which stated that even if the camp has activity to maintain contact with The public, which is in doubt in view of the ages of its participants, in the test of dominance the totality of the circumstances leads to the conclusion that the summer camp subsidy entails a direct financial benefit to the participants’ families. This benefit, which is the dominant element, compared to any element of propaganda promotion of the faction. . In the end, the Likud was fined NIS 100,000 and Balad NIS 25,000.

Comptroller Engelman also referred to the debts of the factions. The data show that as of the end of 2018, the factions have current liabilities in the total amount of NIS 119 million and long-term liabilities in the total amount of NIS 5 million. In addition, the five factions have a cumulative deficit totaling about NIS 24 million.

The factions with the largest deficit, as of the end of 2018, are: the Jewish House with over NIS 20 million, RAAM with NIS 1.4 million, Degel HaTorah with NIS 1.2 million, Agudat Israel with about NIS 1 million and Balad with about NIS 420,000.

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MK Nir Barkat in the Likud dyad

(Photo: Meir Ohayon)

The Comptroller also noted in the report deficiencies concerning Knesset members and Likud candidates: Nir Barkat – Non-registration of expenses, lack of references to expenses, deviation from the ceiling of expenses. The fine: 25,000 shekels. Job called – Failure to submit an affidavit of a candidate, failure to provide an explanation to cover a deficit, failure to record expenses, failure to maintain a bank account as required, lack of references to expenses and deviation from the expense ceiling. The fine: 22,000 shekels. Osnat Mark – Submission of a financial report very late, lack of references to expenses, unreasonable expenses. The fine: NIS 13,000.

Patin is filled – Failure to maintain a bank account as required, expenses that are not election expenses, non-refund of donations as required, donations from someone whose identity has not been checked and donations from a corporation. The fine: 13,000 shekels. Etaf KrinowJ – Failure to submit a financial report. The fine: NIS 7,000. Katie Sheetrit – Non-registration of expenses, lack of references to expenses, deviation from the ceiling of expenses. The fine: NIS 7,000. Yaron Mazuz – Lack of references to expenses, deviation from the expenditure ceiling. The fine: NIS 6,000.

Defects also arose regarding Knesset members and candidates in other parties: Salah Saad (Labor) – Failure to manage a bank account as required, lack of references to expenses and deviation from the expense ceiling. The fine: 12,000 shekels. Nazar Elimi (Labor) – Failure to submit a financial report. The fine: NIS 7,000. Gur Minzer (Meretz) – Failure to manage a bank account as required, receiving donations from a corporation and exceeding the expense ceiling. The fine: NIS 6,000.

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