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Israeli Interior Ministry Imposes Sanctions on Bnei Brak Over 130 Million Shekel Deficit
The Israeli Interior Ministry has sanctioned Bnei Brak municipality over a 130 million shekel deficit, freezing salary upgrades and personal contracts. Mayor Chanoch Zeibert must submit a recovery plan by October 11 or face appointment of a financial overseer who will control the city's budgetary decisions.
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What happened
- 01Bnei Brak faces a 130 million shekel deficit, worsening in 2026 despite increased grants.
- 02Interior Ministry freezes salary upgrades and personal contracts for the city.
- 03Mayor Chanoch Zeibert must submit a budget recovery plan by October 11.
- 04Failure to comply may lead to appointment of a financial overseer controlling finances.
- 05City has sold securities and nearly maxed out a 90 million shekel credit line.
- 06Municipality delays supplier payments and owes 30 million shekels to water corporation.
The city's financial crisis worsened despite increased government grants, with delayed payments and depleted credit lines.
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