No criminal investigation of Jacob Frenkel

Attorney General Elyakim Rubinstein nonetheless determined that payments received by the former Bank of Israel governor were "by improper, inappropriate procedures" and must be returned.

Attorney General Elyakim Rubinstein has determined that there is no basis for opening a criminal investigation against former Bank of Israel governor Prof. Jacob Frenkel, in the matter of state funds alleged to have been received illegally by Frenkel, according to findings in the most recent State Comptroller's Report.

Rubinstein nonetheless determined that although there was no basis for a criminal investigation, the matter was tainted by "improper, inappropriate procedures".

Rubinstein said that Frenkel must return funds received on salary items such as vacation days and sick leave, and that the returned sum must be reviewed.

Rubinstein noted that the phenomenon was not a new one in public sector administration. "Government officials and public authorities would never use their own money the way they use public funds". He further said that the central bank should learn a lesson from the matter.

"This is a test, pure and simple, of an institution whose business is state finances, whose officials must take special care in using public funds, as was not done in this case," said Rubinstein.

"I did not have and do not have any desire to keep any sum of money against regulations. Now it is clear how out of place the unbridled attacks against me were," Frenkel said today.

Frenkel expressed satisfaction about Rubinstein's decision, saying it supported his claim that he acted without malice.

Frenkel said he supported the ruling made by Rubinstein and the State Comptroller, that the Bank of Israel's regulations and decision-making procedures in administrative areas should be clarified. He added that would act according to Rubinstein's ruling.

Published by Globes [online] - www.globes.co.il - on 25 June 2002

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