Israeli Knesset Finance Committee Debates Budget Amid Security Needs and Controversy

The Knesset Finance Committee convened for a special session during a recess to discuss significant budget transfers, including an urgent NIS 14.8 billion increase for defense.

Alongside the defense allocation, the committee addressed NIS 2.5 million for compensation to families of Yemenite, Oriental, and Balkan children, and an additional NIS 2.5 million for the "Equal Opportunity" program, which provides financial guidance to those with credit restrictions. While these latter two items are not as critical as the defense budget, their importance is acknowledged.

A point of contention is the Ministry of Finance's request to reconsider a NIS 13 million loan for the company "Slice Gmul." This request resurfaced despite the company's authorized trustee, Efi Sandrov, not yet submitting required financial reports. The state had previously granted Slice Gmul a NIS 20 million loan in 2025, and the new request would bring the total state loans to NIS 33 million.

The Finance Ministry stated the loan is to cover the gap between the company's management fees and its ongoing expenses, including salaries and legal proceedings to locate investors' funds. The funds are also intended to continue a court-approved settlement plan and protect investors' rights. However, committee members have previously questioned the total cost of the authorized management, the amount actually returned to investors, and future projected costs, which are estimated to reach approximately NIS 67.5 million over three years.

During prior discussions, the authorized trustee confirmed about NIS 7 million from the initial loan was paid to law firms, but a clear answer on total expenses was not provided. While claiming tens of millions have been returned to investors, committee members sought organized data to compare returned funds against management expenses. The committee had previously halted the loan approval, demanding a detailed report, which has yet to be submitted. The urgency of reconsidering the Slice Gmul loan before receiving this report remains unclear.