Israeli Lawmakers Demand Transparency Over Missing 50 Million Shekels in Salyas Fund Management

Israeli Member of Knesset Hanoch Milwiczky has called for full parliamentary sessions during Operation "Roar of the Lion" to address concerns over the management of the Salyas pension fund case. Following reports that the authorized management process has already cost over 50 million shekels without returning funds to the pension holders, attorneys Eitan Erez and Mor Ben Shoshan, representing hundreds of affected members, petitioned the Tel Aviv District Court to compel the trustee, CPA Effi Sandrov, to submit a detailed audited financial report on all management expenses.

The petition came after two Finance Committee meetings revealed numerous questions about the management's conduct and costs. Sandrov requested an additional 13 million shekel loan from the state to continue managing the case, but Knesset members rejected the request twice, demanding a comprehensive accounting of expenses, funds returned to members, and the management's achievements. Committee chairman Milwiczky emphasized the need for clear data on the chances of success and the amount recoverable for the fund.

MK Yitzhak Pindrus criticized the Capital Market Authority representatives for failing to supervise the fund for years, calling the situation a public funds scandal. The pension holders' lawyers highlighted that no audited financial report has been presented despite costs exceeding 50 million shekels, including approximately 7 million shekels paid to law firms from the initial 20 million shekel state loan. Payments to EY and other service providers remain undisclosed.

The petitioners also challenged Sandrov's proposed fund distribution mechanism, which prioritizes covering management expenses and repaying state loans before compensating pension holders. They argue this unfairly burdens the victims of the fraud and request the court to prioritize returning funds to members over financing ongoing management.

In response, Sandrov stated that despite months without payments to many involved, the management team is committed to recovering the pension holders' money. He noted ongoing legal and accounting efforts to recover assets and pursue claims totaling 1.6 billion shekels. Sandrov assured that detailed information will be submitted to the court and made public in the coming weeks, following a structured work plan. He emphasized the unprecedented complexity of the case and the dedication of the management team, accountants, and lawyers working tirelessly to mitigate the damage caused by the fraudsters and negligent fund managers.