Justice Ministry Report Alleges JNF Misuse of Funds

A Justice Ministry report alleging the politicization of The Jewish National Fund, including millions of dollars diverted for political purposes, could threaten the continued existence of the agency, according to The Times of Israel on Thursday.

According to the findings JNF transferred millions of shekels to political bodies and private entities in 2014-2017, mostly under former chairman Danny Atar and in direct violation of the organization’s mandate.

The report’s author, accountant Itzik Slobodiansky, declared that the implications were so serious that JNF would need to be dissolved.

However, Attorney Karen Schwartz from the Justice Ministry’s Corporations Authority, which commissioned the report, has so far held off on any action, noting JNF’s willingness to cooperate with investigators and address the issues being raised.

Recipients of monies from JNF during this period for questionable reasons, included: World Likud, the right-wing Likud party’s global arm; the Yedioth Ahronoth publishing group, among others.

“JNF spent huge amounts, in violation of its procedures, without insisting on its rights and doing so without promoting its goals,” the report read.

The politicization affected election of its board and other senior positions through a mechanism “that includes political characteristics that led to deeply rooted problematic norms in the company.”

In addition, an ombudsman report from 2017 found that JNF had given hundreds of millions of shekels to projects without proper oversight and according to “personal preferences.”

In response to the new report, JNF agreed to a comprehensive review of its operations to be led by an external reviewer appointed by the Justice Ministry.

JNF was founded in 1901 with the purpose of purchasing lands in Ottoman Palestine for Jewish settlement. Following the establishment of the State of Israel in 1948, the nonprofit redefined its objective as the reclamation of lands for the Jewish people, becoming increasingly more involved in Yehuda and Shomron following the Six Day War in 1967.