Hirchson takes power over credit to cities from Zelekha

The move came as Zelekha failed to carry out Hirchson's instructions regarding to approve the provision of credit for 20 local authorities with deficits.

By SHARON WROBEL
December 7, 2006 06:37
1 minute read.
yaron zelekha 88 298

yaron zelekha 88 298. (photo credit: Ariel Jerozolimski)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

In an unprecedented move, Minister of Finance Abraham Hirchson took away the responsibility of Yaron Zelekha on the issue of credit to local authorities from Bank Otsar Hashilton Hamekomi, after the accountant general refused an order to provide credit for 20 debt-ridden local authorities. "This solves the problem of local authorities, who had been refused credit," the Finance Ministry said in an official statement. This move came as Zelekha failed to carry out Hirchson's instructions regarding to approve the provision of credit for 20 local authorities with deficits who were not able to pay out salaries to municipal workers. Last week, the Histadrut Labor Federation declared a general public-sector strike over months of delays of all or part of the salaries of some 12,000 municipal employees. The strike is expected to resume next week, if the treasury does not provide immediate solutions by the end of this week. In reaction to Hirchson's move, the Histadrut Labor Federation said the approval was only a small step towards the payment of salaries, when 42 local authorities still were delaying municipal workers' salaries. Following Zelekha's refusal, Hirchson decided under Article 34 of the Government law and acting with the approval of the Attorney General Menachem Mazuz to take over the responsibilities of the Accountant-General and approve the matter himself. On November 27, the tenders committee at the Finance Ministry decided to exempt Bank Otsar Hashilton Hamekomi, which lends money to local government, from the requirement to compete through a tender process. That exemption still awaited the confirmation of Zelekha who, on Tuesday, decided not to ratify it. In reaction to the tenders committee's decision and Zelekha's response, Hirchson decided to sideline the Accountant-General and approve the exemption, which will be effective until the end of March 2008. In recent weeks, Hirchson also removed Zelekha's authority over the tender for banking services to state employees, and delegated it to Ministry of Finance Director General, Dr. Yossi Bachar. The Histadrut Labor Federation last week indicated that Zelekha was responsible for severing attempts at a compromise with the civil servants union put forward by the Ministry of Finance. The Accountant General refused to delay the tender process by three months from the end of December 2006 to March 2007. The tender had been frozen to resume talks between the two sides and halt further strike action.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS