Israeli Parliament Questions State Funding for Slices Pension Fund Management Amid Cost Concerns

The Israeli Knesset Finance Committee recently convened to discuss a request from the Treasury's Budget Department for an additional 13 million shekels in state funds to finance the ongoing activities of the court-appointed trustee managing the Slices pension fund case, accountant Effi Sandrov. This request adds to previous funding, with total management expenses projected to reach approximately 67.5 million shekels over three years. The committee members expressed concern over the high costs and demanded detailed accountability regarding funds already recovered for Slices members, total expenses incurred, and justification for further public funding.

During the session, Tamar Levi Bona from the Budget Department explained that the funds would cover efforts to locate assets, improve existing funds, legal proceedings, and accounting services. However, lawmakers questioned the need for more money given that only about 10.3 million shekels had been recovered from fund managers so far, despite the trustee reporting assets worth around 570 million shekels identified or expected out of 1.05 billion shekels transferred by members to foreign funds. Some of these assets had been in the fund before the trustee's appointment, including 170 million shekels awaiting distribution and loans previously extended to members.

The committee also scrutinized settlement agreements with insurance agents and fund developers, highlighting a case where 42.25 million shekels were transferred to a fund managed by Amnon Yaakobi, but only 4.65 million shekels in assets were returned in exchange for broad legal immunity. Trustee Sandrov acknowledged that about 7 million shekels from the initial 20 million shekel state loan had been paid to law firms, but detailed expense breakdowns were not provided. The committee decided to withhold approval of the additional loan until more comprehensive financial data and future projections are submitted.

In response, Effi Sandrov contested the article's figures, stating that the report contained inaccuracies and did not reflect data submitted to the court and the Capital Market Authority. He emphasized that the loan was granted to the Slices fund company, not to him personally, and that he operates under strict court supervision with quarterly expense reports submitted to the Treasury. Sandrov claimed that recovery rates exceed 30%, with some clusters achieving up to 91% in dollar terms, and that tens of millions of shekels have already been returned to members with more awaiting legal approval. He also denied managing duplicate proceedings and opposed settlements with low recovery rates. Sandrov criticized the media for presenting figures disconnected from reality and clarified factual errors regarding lawsuits and claims against fund controllers.