Israel’s National Insurance Institute (NII) accuses the Finance Ministry and government of cheating the public by diverting surplus funds into the general budget, Times of Israel reported.
Orna Angel, newly appointed chairman of its audit committee, said that since 1980, the government misused over $57.4 billion of funds accumulated since 1954.
In 1980, the Finance Ministry and the NII signed an agreement allowing the ministry to use reserve funds for so-called “constructive investments.” Instead, it is using them like tax revenues and compensating for the loss to National Insurance by passing laws making it harder for Israelis to get their dues.
In response, the government said that of $19 billion paid by NII during 2017, income from public contributions was only $11.6 billion. The NII is expected to reach insolvency in 2045 and is supported by state payments of about $8 billion a year, the government said.