Ashkelon Municipality Shuts Down Controversial Funding Conduit
Translated & summarized from Zman Yisrael by baba
The Ashkelon Municipality has closed "Ashkelon Network," an entity accused of improperly funneling tens of millions of shekels for nearly five years without transparency or oversight. Investigations revealed alleged job awards to associates and questionable funding practices. The municipality's decision to close the network followed mounting media scrutiny and internal concerns. Critics argue the closure is insufficient and demand a full investigation into the alleged misuse of public funds and conflicts of interest, including the employment of relatives of city officials within the network.
The story in 6 lines · by baba
- Ashkelon Municipality closed "Ashkelon Network," an entity used for irregular funding, after nearly five years of operation.
- The network is accused of funneling tens of millions of shekels without transparency or proper oversight.
- Allegations include awarding jobs to associates and bypassing tender procedures for funding culture and sports.
- External legal opinions commissioned by the municipality have been criticized for containing contradictions and misrepresentations.
- Critics, including a former council member, are demanding a thorough investigation into the alleged misuse of public funds.
- The closure occurred amid ongoing media investigations and internal concerns about the network's legitimacy.
The Ashkelon Municipality has abruptly decided to close "Ashkelon Network," an entity that has allegedly served as a conduit for tens of millions of shekels in irregular funding for nearly five years. The municipality twice postponed city council discussions intended to address the network's operations. Investigations revealed that "Ashkelon Network," originally a Jewish Agency body, was taken over by the municipality for purposes including awarding jobs to associates and funneling funds without transparency or oversight.
Despite mounting questions and concerns from opposition members and the media, the municipality and the Jewish Agency initially offered only general responses. However, as further investigative reporting loomed and internal concerns grew about the difficulty of sustaining the arrangement, the municipality decided to shut down the network. This entity was reportedly used to fund culture, entertainment, youth, and sports activities as a sole supplier, bypassing tenders and proper procedures, leading to alleged conflicts of interest.
In an attempt to legitimize past dealings, the municipality commissioned external legal opinions, including one from attorney Shachar Ben-Ami. However, these opinions have been criticized for containing contradictions and misrepresentations, allegedly aiming to retroactively justify the network's establishment and use as a "cash cow" without adhering to legal requirements. The Jewish Agency, despite receiving warnings, has been accused of failing to thoroughly investigate the complaints regarding the network's misuse.
Concerns have been raised that the funding channel through "Ashkelon Network" may resemble a previous scandal involving "Ashkelon Fund" donations, which is under police investigation. The network's budget, which reached 16.5 million shekels in 2025 with a deficit, funded numerous cultural activities, some without clear justification, suggesting an easier method of budget transfer compared to internal municipal departments subject to scrutiny.
Former city council member Eva Tutai has been actively seeking answers from Mayor Tomer Glam, who is reportedly under criminal investigation, but has faced dismissal. Tutai also approached the Jewish Agency and its chairman, Doron Almog, but received insufficient responses. The agency consistently refuses to conduct a thorough review of the complaints through its board or management, despite the network belonging to it.
Legal counsel Shachar Ben-Ami, who also provides planning and construction legal services to the municipality, has been criticized for his opinion, which allegedly overlooks significant flaws in the municipality's dealings with the network. Ben-Ami, who is reportedly paid hundreds of thousands of shekels annually by the municipality, has refused to speak with journalists directly. The network's closure occurred shortly after these investigative efforts intensified.
The article details numerous alleged conflicts of interest within the network's operations, including the mayor's nephew being employed as a community center director, the network's deputy CEO being the wife of the mayor's senior assistant, and the director of the municipal Culture, Youth, and Sports department also serving as a network director and approving its budgets. The network's CEO is reportedly a close associate of the mayor. Employees of the network are now uncertain about their future employment.
The Jewish Agency stated that the "Woldenberg Community Center," which is controlled by the United Israel Appeal (UIA), is not involved in the day-to-day agreements or external legal opinions commissioned by the municipality. They claim the management agreement is a five-year contract and that the company's audit committee functions properly. However, the network was shut down just two days after this statement, contradicting the notion of a long-term agreement.
The municipality officially announced the network's closure, citing efficiency and the return of management to the municipal company for culture, youth, and sports. However, the announcement provided no explanation for the timing or the reasons behind the initial establishment of the network as a separate entity to bypass tender procedures and oversight. City council member Adv. Tamar Keidar emphasized that the closure is not the end of the matter and called for a thorough, independent investigation into the use of public funds and the alleged conflicts of interest.