City Treasurer Reveals Severe Financial Crisis in Modi'in Illit

The financial distress of the Modi'in Illit municipality was revealed in unusual remarks made by City Treasurer Avi Eden during a holiday gathering for municipal employees. Eden described significant cash flow shortages and delays in fund transfers, which he claims are owed to the municipality by the Ministry of Interior.

"To this day, they haven't transferred a lot of money that is rightfully ours. It has created a terrible cash flow chokehold," Eden told employees. "We are barely managing. I fight tooth and nail every month to pay salaries on time. We have truly reached situations we haven't seen in almost 10 months."

A major point of contention for Eden was the fund for reducing gaps, intended to assist local authorities. He stated that the municipality has not yet received funds allocated to it from this fund, asserting that the Ministry of Interior owes Modi'in Illit NIS 15 million solely from this source, in addition to other outstanding amounts.

Eden also addressed the municipality's dealings with suppliers due to the cash flow problems, asking for patience and limiting new orders to only essential needs to ensure salaries could be paid.

The Ministry of Interior responded by stating that budget allocation from the fund for reducing gaps requires the Interior Minister's approval. They acknowledged awareness of the issue and mentioned that alternatives for resolution have been proposed to the municipality. The article notes that there has not been a serving Interior Minister since October 2025, following Moshe Arbel's resignation from the post.