Education Ministry Sues Non-Profit for $500,000 Over Inflated Student Numbers

The Israeli Ministry of Education has filed a lawsuit seeking NIS 1.87 million (approximately $500,000) against the Beit Yosef association in Ashdod, a non-profit operating a special education school called "Hanoch Lenar." The ministry alleges significant discrepancies between the number of students reported and those actually attending the school, leading to inflated funding. The core amount sought is NIS 1.365 million, with the remainder being interest and linkage.

According to the lawsuit, filed at the Ashdod Magistrate's Court, instances were found where 51 students were registered but only 12 attended. In another case from December 2017, 20 students were reported, but only one teacher and five students were present during an inspection. The ministry also claims that students who had left the institution, were attending other schools, or had even enlisted in the IDF continued to be listed on the rolls. Similar discrepancies were noted in class sizes, with fewer students present than reported.

The ministry's claims extend beyond student numbers, alleging that the association received funding for staff and work hours that were not demonstrably provided. This includes deductions of approximately NIS 1.18 million for unfulfilled teaching hours, NIS 238,000 for para-medical staff, NIS 53,000 for supplementary aides, NIS 90,000 for janitorial staff, and NIS 126,000 for teacher salaries during summer vacation.

Beyond financial irregularities, the Ministry of Education cited non-financial deficiencies, including unreported violence, pedagogical shortcomings, and false reporting on staff, student numbers, and learning scope. The lawsuit also mentions severe violence, sexual assault, and a stabbing incident near the school. The ministry is now seeking to hold two board members and authorized signatories personally liable for allegedly breaching their duty of care.

The lawsuit was filed after years of legal battles initiated by the association, which claimed harassment and selective enforcement by supervisory bodies. These claims were rejected by the District Court for lacking a minimal factual basis, and subsequent appeals to the Supreme Court in March 2024 were also denied. Despite these rulings, the ministry was only able to offset about NIS 836,000 of the owed amount through previous budget adjustments, leaving the remaining debt that prompted this lawsuit.