Israel’s most expensive civil servant in 2005 was a member of the Bank of Israel board of management, who has since retired. His salary cost, including employer costs and severance compensation exceeded NIS 218,000 per month, or NIS 2.62 million for the year. It cannot be ruled out that he will included in the list of former executives who will summoned to a hearing to return their excess pay. Ministry of Finance Director of Wages Eli Cohen initiated the hearings, on the grounds that the money was paid illegally.
The list will apparently include seven other members of the Bank of Israel’s board of management. The executives were mentioned in a report by State Comptroller and Ombudsman Micha Lindenstrauss a year ago. They will be asked to return NIS 12 million altogether.
Bank of Israel employees who retired in 2004 and are due to be summoned to the hearing include the chief auditor, chief planner, a senior auditor, and a deputy department manager.
If the hearing sets 1993 as the determining date for the return of money, employees who retired in 2003 will probably also be summoned to the hearing. 66 Bank of Israel employees retired in 2003, with an average severance package of NIS 1.5 million and an average pension of NIS 32,000 - the same as a ministry director general.
Sanctions at the Bank of Israel continued today to protest what the workers committee calls foot dragging in signing a new wage agreement. The employees are not licensing activity at the Banking Supervision Department, holding monetary tenders, or transferring material and data to the bank’s management. They are also disrupting monetary discussions ahead of the interest rate decision for April. The delivery of cash for ATMs and banks and the publication of representative exchange rates are unaffected.
Bank of Israel workers committee chairperson Rimona Leibowitz said, “The sanctions will continue and will intensify. We’ll take specific actions when a decision is taken to hold hearings and the return of money.”
Yesterday, the Bank of Israel management called on Minister of Finance Abraham Hirchson to intervene. Cohen’s ultimatum expired at midnight yesterday, after it was extended for two weeks, in addition to the two weeks announced by Bank of Israel director general Ya'acov Danon.
Published by Globes [online], Israel business news - www.globes.co.il - on March 8, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007