Comptroller: Frenkel received improper payments

Newly-nominated, previous Bank of Israel governor was required to refund the government NIS 238,000 in 2002, state comptroller finds.

June 24, 2013 13:52
1 minute read.
Jacob Frenkel

Jacob Frenkel370 USE THIS ONE. (photo credit: Courtesy TAU)

In 2002, new-old governor of the Bank of Israel Jacob Frenkel was required to refund the government NIS 238,000, following a harsh report by then-State Comptroller Eliezer Goldberg on benefits that Frenkel received when he left the Bank of Israel.

"Globes" reported comprehensively about the way in which, at the Bank of Israel, Frenkel, with the help of a senior manager who was subordinate to him, arranged "special financial arrangements" - in effect a large and possibly illegal financial package.

Frenkel found a way to benefit from every possible linkage: salary terms and expenses linked to ministers; academic rights linked to university professors; and extraordinary salary terms that Bank of Israel executives receive in any case. The result was hundreds of thousands of shekels in additional money that Frenkel took from the public's coffers.

The "Globes" article was published on April 29, 2002.

The law states that the salary, services, supplements, and pension received by the governor of the Bank of Israel will be equal to those of a minister. Goldberg described, item by item, how Frenkel successfully manipulated the system, with the help of a senior subordinate, to receive substantial additional sums.

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