While the apparent scandal surrounding the use of NPOs in the elections
campaign of Ehud Barak in 1999 is being hushed up by the Establishment,
which is relying on the public's short recall, Gidi Weitz, a reporter for
the Jerusalem weekly, Kol Ha'ir who shed a lot of light on the NPO
scandal, has exposed another peculiar episode involving the exploitation of
Histadrut funds for political ends.
Writes Weitz: "Perhaps some people still recall how at the end of 1994
Chaim Ramon and Amir Peretz pledged to stop the corruption plaguing the
Histadrut. Although the highly vocal partnership managed to blast Chaim
Haberfeld from his position as head of the Histadrut, it seems that nothing
much has changed in terms of the level of motives. Recent information on
Peretz' activities and the ties he forged between the Histadrut and the Am
Echad Party could lead to a new police investigation in the near future."
Weitz writes that in 1998, an organization called Association for the
Advancement of Wage Workers in Israel was set up. It was registered as an
organization that provides consulting services in the areas of public
battles, strikes, etc. for workers' committees from all economic sectors
across the country. Included among the stated goals: the advancement of the
handicapped in Israel.
Another of the secondary goals mentioned was assisting Amir Peretz' party,
Am Echad, with the assumption that the party would advance issues the
organization supports. During the 1998-99 fiscal years the association was
funded by the Histadrut, then headed by Peretz, with a budget of some NIS
two million (about $500,000). Organization members claimed they deserved
these funds due to their connections with Chaim Katz's Oz faction,
currently number two in Amir Peretz' Knesset faction, Am Echad. The
documents uncovered show that a portion of the money designated for that
faction was used to fund Peretz' activity in Am Echad. One hundred and
fifty thousand shekels were transferred to the party and another NIS
130,000 were used to pay membership fees for 4,323 workers registered as Am
Echad members.
Weitz writes, "To explain this large-scale funding initiative, the
organization said assistance was given to thousands of workers facing
financial difficulties. In light of the fact that these membership fees
come to NIS 30 ($7) per worker, this excuse sounds somewhat unlikely. In
fact Histadrut funds were used as a political tool to recruit thousands of
voters to the Histadrut chairman's party.
"During the recent elections, repeated mention was made of the pressure Am
Echad brought on workers to help the party pass the minimum percentage
requirement for entering the Knesset. Previous exposes on these pages have
also revealed the manner in which the New Life for the Histadrut
Association funded some of Chaim Ramon's political associates even after he
stepped down from his seat as Histadrut chairman. This affair is now in
advanced stages of investigation."
All of these incidents together form a clear and disturbing picture:
Histadrut funds are transferred freely and are allocated for various
undesirable purposes.
In response, the Association for the Advancement of Wage Workers in Israel
counters that it received funds designated as aid to the Histadrut's Oz
faction. The transfer of funds to Peretz' party has remained a mystery,
shrouded in vague explanations about Am Echad's tight connection to
workers. Despite being asked about specific documents held by Kol
Ha'ir, the Histadrut spokesman was unable to locate any documentation in
the treasurer's office for these transfers of funds."
