Sources inform ''Globes'' that the police have opened an investigation against Koor chairman Charles Bronfman and CEO Jonathan Kolber. They are suspected of allegedly illegally funding Ehud Barak's election campaign in 1999.
The Office of the State Comptroller has opened a simultaneous investigation against Bronfman and Kolber. The police and State Comptroller are also investigating Barak's brother-in-law, Adv. Doron Cohen, and businessman Eilon Rafaeli, for alleged violations of the Party Financing Law and Non-Profit Organizations Law.
The investigations were opened following an investigation by Registrar of Associations Amiran Bogat, who submitted his findings to the police and State Comptroller. The alleged activities were allegedly carried out through the ROVAD association.
ROVAD's official purposes are "to encourage immigration to the State of Israel and assist the absorption and welfare of new immigrants, invest efforts and resources in education and fostering immigration, and to study basic issues and encourage questions in vital cultural, as well as economic fields." However, the Registrar's investigation found the association was used as a financial pipeline for Barak's election campaign.
Three weeks ago, State Comptroller and Public Complaints Commissioner Eliezer Goldberg asked Kolber, Cohen, and Rafaeli to submit clarifications on the matter. There was no mention of whether Goldberg also approached Bronfman, who is an Israeli citizen, but permanently resides in the US.
Goldberg's requests constitute a warning to the three men that they might be harmed by his recommendations. The respondents were requested to respond by last Sunday (September 2), in advance of the publication of the election financing report at the end of the month.
According to the Registrar of Associations' report, ROVAD, which was founded by Cohen and Rafaeli, did not act to fulfill its official tasks. The report claims that ROVAD was used to conduct public opinion and focus group surveys. Most of the surveys directly analyzed Barak's media appearances while he was serving as Labor Party chairman, and provided recommendations of ways he could improve during such appearances. They also recommended how to handle his race for party leadership. The surveys were ordered by Cohen and Rafaeli.
The Registrar of Associations revealed that the money for the association's activities came from three sources: Bronfman, Kolber, and the Cahanov Fund. The total sum amounted to NIS 2.6 million. Of this sum, NIS 467,000 was transferred to the Sharrett Center, while most of the remainder was paid directly to suppliers and contractors.
Published by Israel's Business Arena on 6 September 2001