MK Erez Margalit (Zionist Union), who left Jerusalem Venture Partners (JVP) for politics, allegedly used JVP funds to promote his political interests, according to an investigation published today by Galei Zahal (IDF Radio).
"From the moment you get in, you understand how things are done, and you either chose to be part of it, or you don't," a political activist told Galai Zahal "You know that the money has been given, and that's it. But he doesn't do it in person; it's as if you weren't talking to him." When asked if he had been offered money, he answered, "Yes, yes, I was also offered cash."
The limit for donations in the primaries is NIS 284,000, while Margalit's personal wealth is estimated at NIS 220 million. According to Galei Zahal, sources close to Margalit say that they warned him more than once against crossing the line for legitimate conduct, but he continued even after entering the Knesset in February 2013. The rules require an MK to relinquish his private business, but Margalit recruited some of his political advisors from JVP, which he founded, and continued paying their salaries through JVP's management company, and later through its assets company, which he owns.
Political activists and the offices of other MKs received telephone calls from JVP offices asking them to support Margalit's political initiatives. Some of Margalit's activists traveled in JVP cars, and did their political work in the fund's offices. Even today, Margalit calls himself "MK and entrepreneur," finding it difficult to give up his previous role in business.
A check by Galei Zahal shows that "Margalit currently employs six political and strategic advisors, whom he pays for himself, and at least some of who received their salaries part of the time from JVP Management and JVP Properties, while the rest get their salaries directly from Margalit. Margalit also works with a media consultant firm, receives legal services from a law firm, and hires other people for specific projects. This, of course, is in addition to his team in the Knesset, which is employed according to the rules."
The following response was issued on Margalit's behalf: "MK Erel Margalit pays from his own pocket and his savings for a variety of social activities that he is promoting in Kiryat Shmona, Beer Sheva, the upper Galilee, Jerusalem, and other areas. The desire to find fault in any activity by a public figure is leading to a situation in which even a public figure who is paying for social activity with his own money is criticized. Margalit chose not to use tens of thousands of shekels in public money allotted to him for sending leaflets to voters. After innumerable newspaper reports accusing elected officials of taking, stealing, or otherwise obtaining public money for private purposes, we have a public figure who pays only from his own pocket for this public and social activity.
"Margalit has chosen to finance his public activity by himself, without being dependent on tycoons, leaving him independent and committed solely to the interests of the public and the voters. Needless to say, his employment of professionals to help him in his activity conforms to the provisions of the law. Margalit also paid for the employment of activists in the primaries with his own money, and reported it legally to the State Comptroller. In cases in which salary was paid to employees technically through a company fully owned by Margalit in a way that guaranteed payment of social rights, the payment came from his own pocket. Margalit will continue to devote his efforts, time, and money to promoting regional and social initiatives, and will do whatever he can to create more jobs in the Galilee and the Negev, and narrow social gaps in Israel.
"The use of an MK's private money on behalf of the public does not constitute buying his way to power; it is the exact opposite. It ensures his independent, judgment, and full and exclusive commitment to the public welfare."
Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2015
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