When former Minister and MK Benjamin Ben-Eliezer (Fouad) bought a penthouse in Jaffa for NIS 8.5 million four years ago, there were many raised eyebrows. Where did a man who had been a politician for most of his life get money like that? A letter sent to Ben-Eliezer yesterday summoning him to a hearing may explain the source of some of that money. According to the summons, Ben-Eliezer allegedly gained NIS 6.26 million from sources other than his salary as a public servant. Figures cited in the letter and the table accompanying it indicate that the former minister's income totaled NIS 12.7 million in 2007-2013 alone, including NIS 2.2 million in bribes and NIS 4.1 million in income from an unknown source.
The letter attributes to Ben-Eliezer, who considered running for president of Israel, five separate counts of bribery, fraud and breach of trust, tax violations, and money laundering. "During 2007-2014, Ben-Eliezer was a member of Knesset, and was a government minister for part of that time. Ben-Eliezer is suspected of demanding and receiving money for actions related to his positions from various businessmen, and using this money to purchase properties, among other things," the Ministry of Justice states. "It is suspected that Ben-Eliezer, without reporting, and while taking camouflage and concealment measures, converted hundreds of thousands of dollars in foreign currency into shekels, which he kept in cash in safes at home and in the bank."
The first count concerns $400,000, described as a "loan," which Ben-Eliezer received from businessman Avraham Nanikashvili. In return for this "loan," Ben-Eliezer is suspected of promoting the interests of Shemen Industries Ltd. (TASE;SHMN), controlled by Nanikashvili and his partner, Jacky Ben-Zaken. It is suspected that when Ben-Eliezer was Minister of Industry and Trade, he cooperated with his then-bureau chief, Ayelet Azulai, in pressuring the Israeli Petroleum Council, an agency under the authority of his ministry, to improve Shemen's chances of receiving a drilling license for the Med Ashdod site. In addition, Ben-Eliezer testified on Nanikashvili's behalf in a legal proceeding, for which he is suspected of fraud and breach of trust.
Ben-Eliezer was always known for his close connections with the leadership of the security forces and the government of Hosni Mubarak in Egypt. In the second count, Ben-Eliezer is suspected of contacting the Egyptian consul a number of times, including when he was Minister of National Infrastructures, in an attempt to persuadethe Egyptian government to grant permits to employees of a company dealing in textile chemicals owned by businessman Roi Mutzafi. It is suspected that Mutzafi gave Ben Eliezer NIS 760,000. "In 2011, at Ben-Eliezer's request, Mutzafi gave NIS 260,000 towards the purchase of a lot in Ness Ziona for Ben-Eliezer's wife and son," the Ministry of Justice writes. "In addition, in 2012, Ben-Eliezer asked Mutzafi for NIS 500,000 to pay for the purchase of a home in Jaffa. Mutzafi agreed and gave him the money."
The Ministry of Justice's announcement stated that Ben Eliezer was suspected of exerting pressure on Mutzafi on another occasion to give him NIS 1.2-1.3 million to help him buy his luxury apartment in Jaffa (priced at NIS 8.5 milion), but the money was never given.
Foreign currency in cash
The State Prosecutor's announcement states that as part of the count concerning money laundering, during early to mid-2012, Ben-Eliezer held foreign currency worth NIS 2.1 million. Ben-Eliezer is suspected of asking an acquaintance to convert this money into shekels in order to prevent identification of the money with its real owner.
The breach of trust count concerns false reporting in the declaration of capital provided by Ben-Eliezer as part of his duty as a member of Knessetby allegedly omitting his "cash" assets from the declaration. As part of the tax violations attributed to him, "Ben-Eliezer is suspected of failing to submit annual reports to the income tax authorities in 2007-2013, and of deliberately and intentionally using fraud, deceit, and ruses to evade taxes." Ben-Eliezer is also suspected of "concealing income from bribery and other income resulting from abuse of his status as a senior public servant," according to the Ministry of Justice.
Advocates Tal Zur and Tal Shapira, Ben-Eliezer's lawyers, said in response, "Ben-Eliezer announced that he has no intention of taking part in conducting proceedings in the media, that he is determined to fight for his good name, even at the price of further damage to his health, and will make his pleadings, answers, and grave complaints about the behavior of the law enforcement authorities only to the Attorney General, and only as part of the hearing."
Published by Globes [online], Israel business news - www.globes-online.com - on June 3, 2015
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