Comptroller slams nepotism, lack of cracking down on black market

Despite efforts to legislate against nepotism in the work place, many government companies favor the employment of applicants who have friends or family working at the relevant firm.

By SHARON UDASIN, YONAH JEREMY BOB
State Comptroller Joseph Shapira‏ (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
State Comptroller Joseph Shapira‏
(photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
The lost revenue resulting from the state’s inability to tax the underground economy could amount to as much as NIS 50 billion a year. The Tax Authority is doing virtually no follow-up on funds relating to rabbinic functions.
And nepotism is rife in state companies.
These are some of the conclusions that State Comptroller Joseph Shapira outlined on Wednesday, in his report on economic and infrastructure issues. Shapira handed the report to Knesset Speaker Yuli Edelstein at 3 p.m.
The “importance of the economic issues is particularly noteworthy” following “Operation Protective Edge and the budgetary consequences arising” from it as to extra needed funds “for security and to help harmed citizens,” he wrote in the report.
“In the new reality” following the Gaza war, “the importance of proper and efficient economic management” only rises, he said.
Regarding cracking down on the underground economy, Shapira noted that not only could taxes from the black market raise significant funds to meet the state’s challenges, possibly as much as NIS 10 billion-NIS 50b. annually, but addressing the problem would alleviate the unequal burden placed on law-abiding taxpaying citizens, help close socioeconomic gaps and attain a higher level of social justice.