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 El Hama'ayan Press Release      
‏ 06/11/2007

Tens of millions of shekels of public funds intended for support of non-profit organizations were saved, following a petition of the Movement for Quality Government to the Supreme Court concerning irregularities in the financial management of state funds supporting the “El Hama'ayan” organization.
Following the petition of the MQG to the Supreme Court, new reforms were set for the financial management of the “El Hama'ayan” non-profit organization, as well as זadditional organizations in which financial irregularities were found, and the sum budgeted for support from the Ministry of Education to "El Hama'ayan" was cut by millions of NIS. As a result of the petition special regulations were put into force according to which sanctions will be applied against all organizations that benefited from the support budgets between the years 2002-2004, and in which irregularities of 40% of the total support funds were found.


In March, 2003 the MQG submitted a petition concerning the Ministry of Education’s support for the “El Hama'ayan” non-profit organization. The petition claimed that “El Hama'ayan” had submitted inaccurate financial reports as to its expenses during 2002 to the support committee of the Ministry of Education. Amongst other issues in the petition, the Court was requested to instruct the State to freeze the transfer of money for 2002, and to deduct any over- payment transferred to “El Hama'ayan”. The Supreme Court issued an interim order that froze all money transfers, and as a result no additional funds were transferred to the organization.
In a letter sent this week to the manager of the MQG’s research and economic department, Adv. Nili Even-Hen, it was specified that on 28/12/2003 a decision was taken to deduct the sum of 1,351,541 NIS was deducted from the support funds to “El Hama'ayan” for 2002, due to discrepancies between performance and financial reports. The sum deducted was frozen until all the audits concerning the various reports are completed.

In her letter, Adv. Yochi Gansin, manager of administrative issues in the State Attorney's Office, mentioned the significant contribution of the petition in conjunction with the thorough audit performed on “El Hama'ayan” and similar organizations. She added, that the attitude of the Ministries of Justice and Education to the irregularities discovered in the way the organization was managed led to a re-organization of its activities. In addition, in regard to its activities in 2004, the organization received only 60% of the support it would have received had past irregularities not been exposed.
Adv. Gansin noted: “The contribution of the Movement for Quality Government lies in the tracing of irregularities within the petition, which involved State support funds amounting to tens of millions of NIS annually, as well as in general public government, as well as the submission of the petition itself led in effect to a saving of tens of millions of NIS of public funds; to strict control over submission of correct reports; and to proper government control and follow-up by public officials prior to the allocation of public funds to the supported organizations thereby also maintaining the rule of the law - for all this we are grateful”.

Since all the issues in the petition have already been solved, the MQG and State Prosecution agreed to cancel the petition, and have the Government cover the MQG’s expenses in the amount of 7,500 NIS.

For more details please contact: Mr. Shooky Levanon, Movement's spokesman,
Mobile: +972-52-2860181



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