Meet the most influential figures in the Jewish world
ILA spent millions on unapproved reforms
May 14, 2014 16:48
"The state paid millions for a specific set of reforms but received a totally different kind of reform," comptroller report finds.
Apartment building [illustrative]

Apartment building 311. (photo credit:Ronen Zvulun / Reuters)

The Israel Lands Authority spent millions of shekels to implement reforms that varied greatly from those approved by the government, according to Wednesday’s State Comptroller Report.

The government appointed three bodies to examine ways to reform the ILA between 1986 and 2004. The resulting reforms, passed in 2011 and updated in 2013, called for trimming down the workforce, outsourcing services and focusing on the organization’s main goals of preserving and selling land.

Be the first to know - Join our Facebook page.

According to the report, ILA chairman Benzi Lieberman scrapped the outsourcing plans in order to avoid trimming the payroll.

“The state paid millions for a specific set of reforms but received a totally different kind of reform,” the report said.

In order to reduce the wage burden, the organization was supposed to allow 200 workers to retire. However, only 184 did, at a cost of NIS 150m., and instead of outsourcing or streamlining their jobs – as intended – the ILA hired 170 new employees, undermining the goal of the retirement incentives.

Despite a collective agreement that limited wage increases to 20.5 percent, wages went up by an average of 36%, and spread out over 676 employees. All this added up to NIS 35 million a year.

The ILA’s inability to provide an adequate supply of land fueled a spike in the housing market, where prices increased roughly 80% since 2007.

Relevant to your professional network? Please share on Linkedin

  • Israel news
  • state comptroller
  • israel housing prices
  • israel national news
  • Prev Article
    U.S. grains mixed; wheat falls for 6th straight session
    Your investments: Common mistakes retirees make
    Next Article
    Share this article via
    from around the web
    Related Content
    The Teva Pharmaceutical Industries
    April 30, 2015
    Teva doubles down on Mylan, despite rejection


    Top Stories
    Israel Weather
    • 5 - 17
      Beer Sheva
      8 - 17
      Tel Aviv - Yafo
    • 7 - 15
      8 - 16
    • 10 - 23
      7 - 18