On 16/8/92, the Minister of Justice and the Finance Minister of the Rabin Government appointed an inter-ministerial team “to examine and coordinate all data relating to houses leased, rented or bought in East Jerusalem, for private entities, associations or individuals, via state budgets, or any other assistance of the State and its authorities. ”(Klugman Report Section 1).
The report describes how governmental and state agencies (such as the Ministry of Construction and Housing, the Israel Lands Administration, the Custodian of Absentee Property, the Development Authority, Amidar and the JNF) became a tool in the service of a group of nonprofits seeking to settle Jews in the Old City and Silwan. Dozens of buildings were transferred to these associations without tenders and contrary to proper administration; millions of shekels from state budget were transferred to them; Companies owned by the associations collected from the state “handling fees” and project management fees for the “services” rendered to the nonprofits; And the powers of the Custodian for Absentees’ Properties became a server tool for the associations, that were involved in the declaration of the assets as Absentee properties and subsequently received possession of them.
The report and its appendices can be read (in Hebrew) here, as well as Amidar’s internal audit report of 31/5/93 that dealt with the same issue.