10 million shekels to the fund, tens of millions to the lawyers: The management farce in the Slice case

Two weeks ago, the Knesset Finance Committee convened to discuss a request from the Ministry of Finance's Budget Department to approve an additional 13 million shekels in state funding to support the ongoing work of the temporary manager in the Slice case, CPA Efi Sandrov. This request is part of a broader expenditure plan that, according to court filings, is expected to total approximately 67.5 million shekels over three years.

The unusual request for further public funding prompted MKs to demand a detailed account of the manager's activities. They sought to clarify how much money has actually been returned to Slice members, the total cost of the proceedings to date, and the economic justification for continued state investment. The committee ultimately decided to withhold approval until further data is provided.

Budget Department representative Tamar Levi-Bone explained that the funds are intended for "searching for assets, optimizing existing funds, legal proceedings, and accounting services." This explanation raised critical questions: how can the state be asked to inject another 13 million shekels when, according to the manager's own filings, only 10.3 million shekels have been recovered from fund initiators?

Sandrov presented a scenario where 570 million shekels out of the 1.05 billion originally transferred by members might be recovered. However, the breakdown revealed that much of this amount—including 170 million awaiting distribution, 140 million in member loans, and 126 million withdrawn prior to the management takeover—was already accounted for or accessible before his appointment.

MKs also scrutinized settlement agreements. For instance, in a deal with Amnon Yaakobi, who managed 42.25 million shekels of member funds, only 4.65 million was returned, while the initiator received a broad release from further litigation.

When asked about cumulative expenses, Sandrov confirmed that 7 million shekels from the initial 20 million state loan had been paid to law firms. No specific figures were provided regarding payments to EY or other service providers.

The committee chairman remarked: "These are private market rates, not state rates. Your ability to supervise billable hours is virtually non-existent. Why hasn't the Capital Market Authority explained the economic logic behind investing another 13 million shekels?"

Under the current distribution plan, any recovered funds will first cover management expenses and repay state loans, leaving only the remainder for the members.

In response, Efi Sandrov stated: "The article contains several inaccuracies. The state loan is provided to Slice Gemel, not to me personally. I operate under the strict supervision of the Tel Aviv District Court and report regularly to the Capital Market Authority. Recoveries range from 30% to 91% depending on the cluster. Tens of millions have already been returned to members, with more awaiting court approval. We continue to insist on significant recovery rates and oppose private settlements that offer inadequate returns."