Former National Insurance CEO Accuses Finance Ministry of Misusing Billions in Public Funds
Meir Shpigler, former CEO of Israel's National Insurance Institute (NII) and current chairman of the Israel Electric Corporation, sharply criticized the Finance Ministry on Tuesday for allegedly diverting hundreds of billions of shekels from the NII's surplus funds. Speaking at a joint session of the Labor and Welfare Committee and the State Audit Committee, Shpigler warned that the state has long used insured citizens' money to cover its regular expenses, leaving no funds readily available for the NII in times of need. He emphasized that if the NII requires these funds, it will have to negotiate with the Finance Ministry to retrieve money collected from the public.
Shpigler's remarks followed a recent State Comptroller report highlighting that the 2018 long-term care reform is accelerating the depletion of the NII's cash reserves, potentially rendering it unable to meet its obligations for disability and welfare payments by 2035. He noted that 33% of long-term care recipients receive income supplements, underscoring the vulnerability of these individuals and the state's commitment to social welfare.
He also criticized comparisons between eligibility criteria for long-term care benefits under the NII and health funds, arguing that health funds face financial collapse and impose barriers to care, while the NII strives to provide benefits to all eligible recipients. Shpigler recounted personal experiences with his dementia-stricken father to illustrate the invasive nature of eligibility assessments.
Highlighting the scale of the alleged misappropriation, Shpigler claimed that hundreds of billions of shekels transferred to the budget department are unaccounted for, including approximately 150 billion shekels taken from insured individuals. He cited specific sums: around 70 billion shekels related to unemployment decisions and 50 billion shekels linked to health insurance payments made by the NII to hospitals between 1995 and 2015. He accused the Finance Ministry of treating NII funds as state revenue rather than insurance premiums, suggesting possible criminal misconduct.
Shpigler concluded by expressing pride in his role in implementing reforms at the NII that aimed to ensure fairness and justice for Israeli residents entitled to benefits throughout their lives.
