Former Postal Bank Manager Ordered to Pay Half a Million Shekels for Unauthorized Withdrawals

A former branch manager of Israel Postal Bank and the bank itself have been ordered by a magistrate court to compensate a client nearly half a million shekels for unauthorized withdrawals from the client's account. The client, who was residing in France at the time, claimed the manager withdrew funds without permission. The court ruled that the manager failed to prove the withdrawals were authorized or intended for representatives of the client, describing the actions as managerial misconduct.

The judge noted the manager admitted to exceeding withdrawal limits but denied pocketing the money, claiming it was handed to client representatives and that he had power of attorney. The client, represented by attorneys Ronen Naoi and Daniel Elimelech Azuz, denied authorizing the withdrawals. Despite a prior criminal case where the manager was not convicted of theft but only of fraud and breach of trust, the civil court found the manager forged the client’s signatures on withdrawal slips and ordered full repayment.

Israel Postal Bank argued the client’s claim was baseless, citing evidence that the withdrawals were made at the client’s request and that the client had authorized the manager. The bank also claimed the client’s police testimony was unreliable. Nevertheless, the court held the bank liable for 85% of the compensation due to negligence in supervising the manager and failing to verify signatures. The former manager was held responsible for the remaining 15%.

The incident occurred when Israel Postal Bank was still state-owned; it was privatized in November 2024. Attorney Ronen Naoi praised the detailed ruling and expressed hope it would serve as a warning to institutions handling public funds. The former manager disputed the ruling and plans to pursue further legal options, emphasizing he was never convicted of theft or unauthorized withdrawals. Israel Postal Bank confirmed the manager was immediately dismissed and that the funds have been returned to the client.