Foreign Affairs c'tee holds up NIS 1.65b defense supplement

The Foreign Affairs and Defense Committee today approved the uses of NIS 2.57 billion in US military aid.

The Knesset Foreign Affairs and Defense Committee, chaired by MK Shaul Mofaz (Kadima), today approved the use of NIS 2.57 billion in US military aid. The approval is technical, since the money is American, and will be returned to US taxpayers through reciprocal procurements.

The committee also approved the transfer of NIS 291 million to the defense budget, which was allocated two years ago but not used by the Ministry of Defense in 2010. Altogether, the committee approved NIS 2.87 billion for defense, although this is not new money or money for defense taken from the budget of other ministries.

However, Mofaz refused to put on the agenda a separate budget supplement of NIS 1.65 billion, due to the Ministry of Defense from the under-performance by other ministries, including social affairs ministries. Committee member MK Meir Sheetrit (Kadima) criticized the request to approve the supplement at this time. "It's a pity that the request for the committee to approve was made at the last minute, just before the end of the year. We're not talking about some secret or surprise, and this conduct by the defense and finance ministries reduces the committee's ability to influence."

Mofaz agreed, saying, "The defense and finance ministries today received from us a warning about their conduct in submitting this request at the last moment, especially when we're talking about such large amounts of money."

According to figures verified by the Ministry of Finance, defense budget supplements totaled NIS 3.5 billion in 2010, and NIS 3 billion in 2009, totaling NIS 6.5 billion over the two years.

Last week, the Knesset Finance Committee approved a NIS 799 million defense budget supplement. An additional NIS 620 million is still subject of a longstanding disagreement between Mofaz and Minister of Defense Ehud Barak. The transfers were made following a prior deal between Prime Minister Benjamin Netanyahu, Minister of Finance Yuval Steinitz, and Barak.

The supplement includes NIS 7.4 million previously approved for IDF Yeshivot Hesder units, and NIS 8 million compensation for the building freeze in Judea and Samaria. The approval was made after MK Uri Yehuda Ariel (National Union) lobbied the Finance Committee to release the funds for the Yeshivot Hesder.

Where's the transparency?

In a letter to Netanyahu, Mofaz said, "The way in which hundreds of millions of shekels in budget supplements is transferred are against the democratic principles of transparency and responsibility." He added, "Why aren’t these budgets kept at the social ministries for use in 2012?|

Mofaz concluded, "The Foreign Affairs and Defense Committee is not the government's laundry or rubber stamp for the transfer of money. NIS 1.65 billion is not an amount that is transferred in secret." He called for the decision on the transfer to be made properly, by a regular, transparent cabinet decision that is open to the public.

Ministry of Defense officials are furious at Mofaz. One told "Globes", "This transfer does not require cabinet approval. During the year, the prime minister decides on changes that are discussed and approved by the Knesset. There is no need to convene the cabinet each time. That's how it's always been done." He concluded, "Mofaz's conduct harms Israel's security."

Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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