'This is no time to splurge'

Controversy grows over approval of lavish new facility for prime minister’s residence, office; Netanyahu pledges to annul decision should he win elections; Ynet learns that cabinet approved NIS 650 million project without detailed knowledge of expenses

Roni Sofer
Israel News

Controversy growing: Premiership candidate Benjamin Netanyahu announced Sunday that if elected he will annul the decision to invest NIS 650 million (roughly $160 million) in a new residence and offices for the prime minister of Israel. Meanwhile, sources at PM Ehud Olmert’s office said that Netanyahu himself was the one who promoted the project to build the new facilities, after late Prime Minister Yitzhak Rabin initiated the move in 1995.


“In Netanyahu’s three years as prime minister, as the documents we possess show, this project was accelerated and pushed forward at full force,” one source said.


However, an associate of the Likud leader said that “during that period there was no economic crisis, and right now there is one.” The associate added that “this is not the right time for spending huge sums, during such a grave global crisis, instead of spending money on social needs.”


A total of 14 ministers voted Sunday to approve the construction of the new facility, yet their names have not been disclosed. Four ministers reportedly objected to the move, and at least two abstained. The names have been withheld because of pressure exerted by the ministers. As a result, there is no documentation of the ministers present during the vote.




Computer image of planned PM's residence



Notably, premiership candidates Ehud Barak and Tzipi Livni did not take part in the vote. Livni said that she refrained from attending the session because of possible conflict of interest, while Barak’s office declined comment. However, Netanyahu was quick to accuse Livni of inadequate leadership because of her absence.



Ynet has learned that the following ministers were absent from the vote: Eli Yishai, Ariel Atias, Meshulam Nahari, Daniel Friedmann, Ruhama Avraham Balila and two premiership candidates - Tzipi Livni and Ehud Barak.


Livni said participating in the vote would constitute a conflict of interest, while Barak's office offered no explanation.


Netanyahu was quick to criticize Livni's absence, saying she "ran away from leadership and responsibility."


Ynet has also learned that the ministers were not presented with a detailed list of the venture's costs and possible alternatives. According to the current model, the entrepreneur who will build the new residence will incur the immediate costs of the project, and will be reimbursed by the government over a 20-year-period.

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The following ministers apparently voted in favor of the project: Ehud Olmert, Haim Ramon, Zeev Boim, Raleb Majadele and Yitzhak Cohen. According to government officials, the additional eight ministers who backed the initiative but whose votes were omitted from the government records for fear of public criticism are Meir Sheetrit, Shaul Mofaz, Eli Aflalo, Shalom Simhon, Binyami Ben-Eliezer, Avi Dichter, Yacov Ben-Yizri and Rafi Eitan.


Four ministers opposed cabinet's approval of the project. Education Minister Yuli Tamir said that the money earmarked for the project could help renovate Israel's schools, while Finance Minister Ronnie Bar-On said that the funding for the project could not be approved before the 2009 State Budget is passed.


Minister of Immigrant Absorption Jacob Edery, who also voted against the initiative, said "the prime minister is deserving of a respectable residence and decent offices, but the sum is astronomical, and it is not fitting to allocate such funds during this difficult time." Minister Gideon Ezra said the project was "important" but that "there are more important things we should be spending the money on."


Minister Ramon, on the other hand, said the expenses were "reasonable" as they would be spread out over a 20-year period and would "save a lot of money in the future."