Israeli Finance Ministry Absent as Millions in Protection Racket Compensation Remain Unpaid
Two months after the Israeli government approved tens of millions of shekels in compensation for victims of protection rackets, the Finance Ministry has remained absent from key discussions led by National Security Minister Itamar Ben-Gvir. Despite government decisions allocating 35 million shekels, 30 million from the Tax Authority budget and 5 million from the National Security Ministry, to compensate affected business owners, no payouts have yet been made. The Finance Ministry published a public draft for a six-month pilot program requiring businesses to file claims within seven days, but officials did not attend the critical meetings on the issue.
The government passed two resolutions aimed at combating the protection racket phenomenon, which causes hundreds of millions of shekels in damage to Israeli businesses. One resolution, promoted by Ben-Gvir, called for a national emergency plan focusing on the north and south regions, with a six-month coordinated operation involving multiple ministries including Justice, Finance, and Interior. The other, advanced by Finance Minister Bezalel Smotrich, focused on financial aid for businesses harmed by extortion.
Meetings chaired by Ben-Gvir included senior officials from the prosecution, Justice Ministry, Shin Bet, and police intelligence units, but notably excluded representatives from the Tax Authority and Finance Ministry. The Finance Ministry claimed it did not receive invitations despite their issuance. Discussions revealed an increase in indictments related to protection rackets, with 32 cases currently in court, though plea bargains and inadequate fines undermine public trust. Ben-Gvir also proposed involving Shin Bet more directly in tackling the issue within Arab communities.
Following the Finance Ministry’s absence, Ben-Gvir requested Smotrich to ensure ministry participation in future discussions. Yariv Ben Ami, head of the Galilee anti-protection organization "Ad Kan," noted the compensation framework has yet to be tested due to a recent lull in incidents. He highlighted structural challenges, such as insurance companies requiring security firms for coverage, which inadvertently pushes contractors toward criminal groups for protection, perpetuating a vicious cycle.
Ben-Gvir’s office emphasized his ongoing leadership in a firm reform against extortion crimes, coordinating frequent meetings with various ministries and law enforcement to deliver effective and uncompromising solutions. The Finance Ministry did not respond to requests for comment.
