Balfour Renovation Scandal: Five Years and Hundreds of Millions Later, PM's Residence Remains Unfinished

The official residence of the Prime Minister on Balfour Street in Jerusalem, intended to be a symbol of Israeli governance, has become a "white elephant" over the past five years. Extensive renovations, which began in 2018, are still ongoing with no end date in sight, costing taxpayers hundreds of millions of shekels. This prolonged delay means that successive prime ministers, including the current one, have been unable to reside there, forcing the state to fund security and accommodations in private residences at a significant additional cost.

Critics, including residents and legal experts, have expressed disbelief at the slow pace of the renovations, comparing the five-year duration to the time it takes to build entire infrastructure projects. The State Comptroller has labeled the situation a "scandal," highlighting the immense public funds being spent, with reports indicating that over 103 million shekels have been spent on the Balfour residence since 2021, including 67 million on security. Meanwhile, the state has also funded security and adaptations for Prime Minister Netanyahu's multiple private homes in Caesarea and Jerusalem, amounting to hundreds of millions of shekels.

The history of the Balfour residence dates back to the 1930s, and it has served as the official prime ministerial residence since the 1970s. However, after 50 years, the building's infrastructure and security features became outdated, necessitating a comprehensive renovation. Despite the clear need, the process has been plagued by delays and controversies, including allegations that the Netanyahu family conditioned their temporary move from Balfour on maintenance work at their private Caesarea home, which cost the public nearly a million shekels.

Further complicating matters, the Prime Minister's Office reportedly purchased and stored kitchen and patio components for the Balfour residence at a cost of approximately 16 million shekels, only for them to be discarded when the family remained in Balfour. After Netanyahu lost the 2021 election, the residence was vacated, and a new renovation plan was developed, but government changes again halted the work. During the tenure of Prime Ministers Bennett and Lapid, significant funds were spent on adapting their alternative residences, with Bennett's security costs alone reaching 25 million shekels.

Allegations have surfaced that inflated cost figures, such as a reported 50 million shekels for Bennett's residence, were leaked by Netanyahu's office to tarnish his predecessor's reputation and justify higher expenses for his own family's accommodations. In 2023 alone, nearly 28 million shekels of public funds were invested in upgrading and securing Netanyahu's homes in Caesarea and on Gaza Street in Jerusalem. The article suggests that the prolonged renovation of Balfour may be strategically beneficial, allowing for continued public funding of private residences.

Recent reports and the State Comptroller's April 2024 report have further scrutinized the escalating costs and the lack of adequate protection in the private residences, particularly in light of wartime threats. The Comptroller recommended acquiring a permanent, state-owned alternative residence, a suggestion that has not been implemented. The article also details significant expenses related to security upgrades at the Caesarea villa, including a 1.8 million shekel window repair, with allegations that costs were inflated and approvals were manipulated. The Shin Bet reportedly denied requests for a new wall around the Caesarea villa, yet construction proceeded without authorization. Additionally, the state funded renovations for another Netanyahu property on Haporatzim Street in Jerusalem, ostensibly for a quiet workspace for Mrs. Netanyahu.

Looking ahead, even if a new government is formed, the incoming prime minister will likely face the same dilemma of an unfinished official residence. The article concludes by questioning the prolonged delays and the immense public expenditure, suggesting that a symbolic move into the Balfour residence, perhaps under pressure, might expedite its completion.