In a communique published today, the Bank of Israel admits, for the
first time, that when, in 1986, it issued Jacques Nasser with a permit
to acquire control in the First International Bank, "those issuing the
permit were aware of involvement by and contacts with the Safra family,
as reflected in Safra's being allowed an option to acquire Nasser's
share, with Safra financing the deal, and with an assurance of
assistance for managerial and professional backing by Safra in the
management of the bank".
The Bank of Israel is thereby in effect confirming, for the first
time, one of the allegations set forth in the statement of claim filed
by Nasser against Safra. This statement of claim alleges that Nasser
served as a man of straw for Safra, when he acquired the First
International Bank in 1986. The Bank of Israel communique does not
expressly name Edmund Safra, referring instead to the Safra family as a
whole.
The Bank's communique indicates that Edmund Safra never got a permit
from the central bank to acquire a bank in Israel. The Bank of Israel
today stated in response, that Moise and Yosef Safra were issued the
permit, and are the owners of the First International Bank. Safra,
notably, has yet to reply to Nasser's allegations.
The Bank of Israel communique stated that Safra's involvement in the
1986 bank acquisition was "known to the issuers of the permit", which is
to say, to the then superintendent of banks, Galia Maor, and the then
Governor, Moshe Mandlebaum. The Bank of Israel spokesman refused to give
details as to the extent of involvement in the matter, if any, by
the then minister of finance, Yitzhak Modai and the then prime
minister, Shimon Peres