Treasury absent from discussions: tens of millions for protection racket victims remain frozen
Despite a government decision, the Ministry of Finance has failed to attend meetings on combating protection rackets led by Itamar Ben Gvir. Two months after the pilot project was announced, no funds have been transferred to affected businesses.
Two months after the government approved tens of millions of shekels in compensation for victims of protection rackets, the Ministry of Finance has published a draft for public comment but has been absent from all discussions regarding protection money collection led by Minister of National Security Itamar Ben Gvir. Meanwhile, no business owner has received compensation, and the framework for the pilot project intended to assist businesses and increase police reporting remains undecided.
To combat a phenomenon causing hundreds of millions of shekels in damage to Israeli businesses, two government decisions were passed. The first, from the Ministry of National Security, mandated a national emergency plan to fight protection rackets, focusing on the South and North. Approved last June, it requires coordination between the Ministries of Justice, Finance, and Interior.
The second decision, promoted by Minister of Finance Bezalel Smotrich, focused on "assistance to business owners whose property was damaged by protection money collection." The government allocated 30 million shekels from the Tax Authority budget and 5 million shekels from the Ministry of National Security budget. Although the Ministry of Finance published a draft for public comment to launch a six-month pilot, its representatives have not attended the essential discussions led by Minister Ben Gvir.
These meetings involve senior officials from the State Attorney's Office, the Ministry of Justice, the Shin Bet, and the police, including the head of the Investigations and Intelligence Division, Nitzav Boaz Blet. At the first meeting, representatives of the Tax Authority and the Capital Market Authority were notably absent. While the Treasury claimed they did not receive invitations, the Ministry of National Security maintains they were sent.
Discussions revealed an upward trend in indictments, with 32 cases currently in court. However, concerns remain regarding plea bargains that undermine public trust and court fines that fail to reflect the severity of the crimes. Additionally, a proposal was raised to involve the Shin Bet in handling protection rackets, given their existing operations within the Arab sector.
Minister Ben Gvir has reached out to Minister Smotrich, requesting his ministry's participation in future meetings. "It seems to me that we agree on the importance of the subject for the citizens of Israel, and on the importance of implementing the government decision," he noted.
Minister Ben Gvir's office stated:
"In accordance with the government decision, Minister of National Security Itamar Ben Gvir is leading an uncompromising reform in the fight against extortion crimes. Each of the partners has a necessary and important part in eradicating the phenomenon that harms the business community and causes enormous damage to the sense of security and the economy. The participation of all elements in the discussions is vital to create an effective and uncompromising approach to eradicate this phenomenon."
No response was received from Minister Smotrich's office.
