Thursday, April 7, 2011

Bethel Finances: Israel Bonds denies allegations they paid for Netanyahu's travels

www.bethelfinance.com

Bethel Finance news:

The organization, created to raise money for Israel abroad, says it covered the expenses of Sara Netanyahu, while the Knesset footed the bill for the prime minister's travels.

Israel Bonds denied Thursday allegations that they funded Prime Minister Benjamin Netanyahu's trips abroad, claiming the Knesset paid for his travels, with the fundraising organization covering only the travel expenses of his wife, Sara.

The statement by the Israel Bonds, an organization created to raise money for Israel abroad, came following a Channel 10 report claiming that Netanyahu and his wife billed two separate organizations for a single flight abroad on two separate occasions in 2006.


According to the report, the Netanyahu couple, along with their son flew to London for a public relations campaign aimed at explaining Israel's position to the world, with then then-opposition chief Netanyahu flying at the expense of the state. The Knesset paid $3,240 for his trip.

However, as Channel 10 reported, three bills were sent to Israel Bonds for those same flights. One bill was for $5,339, the second was for $8,579, and the third was for $5,319. In effect, Netanyahu's flight was subsidized by both the Knesset and Israel Bonds.

A statment by Israel Bonds released on Thursday denied these alligations, saying "Mr. Netanyahu is a very desirable speaker. We were willing to fund the couple's travel costs as is customary."

The statement added that Israel Bonds saw no problem with funding "just his spouse [Sara], seeing as the Knesset covered Netanyahu's expenses."

The Israel fundraising organization has come under harsh criticism due to the recent 'Bibi-Tours' accusations that have been leveled at the prime minister, claiming that he and his family received private funds for their travels while he was a civil servant.

Further scrutiny of the fundraising body has revealed that the organization has sent MK's abroad in what is considered a job perk.

This unorthodox practice was exposed by the Hebrew version of TheMarker last week, after which MK Meir Sheetrit submitted a draft bill that would do away with Israel Bonds.

According to the article in TheMarker, politicians funded by Israel Bonds traveled to Europe and the United States ostensibly to advance Israel's interest, and spoke before Jewish audiences in a bid to convince them to invest in Israel Bonds.

But the trips also turned out to be a bonus of sorts - they generally included expensive hotels, fancy restaurants and a limousine with a driver. Prime Minister Benjamin Netanyahu, his predecessor Ehud Olmert, Finance Minister Yuval Steinitz, and MKs Dalia Itzik, Roni Bar-On and Rachel Adatto all flew abroad on behalf of Israel Bonds.

"The Bank of Israel currently holds $70 billion in foreign currency reserves, so there's no need for Israel Bonds, which brings in $1.2 billion a year," said Sheetrit. "Nowadays Israel can raise money abroad and take out loans at low interest rates."

Sheetrit rejected the claim that Israel needs the organization to maintain the connection between Diaspora Jews and the state.

"It turns out that more bonds are being purchased by American pension funds and banks than by Jews around the world," he said. "The banks and the pension funds buy the bonds because they offer attractive interest rates."

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