The Bank of Israel had not been aware of the sexual harassment complaint against the former CEO of Bank Hapoalim (TASE: POLI), Zion Kenan, and is expected to launch an investigation on this issue.
The Bank of Israel said, "The Supervisor of Banks gravely views the fact that Bank Hapoalim failed to update the supervision on the employee's alleged sexual harassment complaint against a bank executive. The supervisor will examine this issue."
The Bank of Israel will check why this issue had not been reported. Moreover, the Supervisor of Banks Dr. Hedva Ber sees any suspicion of sexual harassment in the banking system as serious and has zero tolerance for this issue, both as a supervisor and as a woman. The banking supervisor is not capable of investigating such complaints but they will be transferred to a police investigation if necessary, as done in the past.
The Israel Securities Authority said that it will also investigate the matter.
Yesterday, Channel 2's Ilana Dayan reported that a former Hapoalim employee complained that Kenan sexually assaulted her during a visit to Kazakhstan, after both went out drinking in the evening. This took place 10 years ago, and the employee recently decided to file a complaint.
Following this incident, the bank had appointed Judge (ret.) Steve Adler, former president of the Labor Court, who determined that no sexual harassment took place, while also ruling an increased severe pay for the employee, which is estimated at millions of shekels.
Bank Hapoalim said in response to the Channel 2 report, "The former president of the labor court, Judge Steve Adler, examined suspicions of sexual harassment and determined, in an unequivocal manner, that neither sexual harassment nor abuse took place. The employee had received enlarged severance pay, following the recommendation of Judge Adler, who discovered that in 2007 the employee was promised a personal contract with improved conditions, but was in fact paid less. There is no connection between the severance pay and the investigation, which was found to be proper."
Published by Globes [online], Israel business news - www.globes-online.com - on November 2, 2016
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