Comptroller: Donations to Peres improper

State Comptroller Micha Lindenstrauss stated on Monday that campaign donations received by Vice Premier Shimon Peres were "improper."

Lindenstrauss established the claim in his report on contributions made to candidates for the 17th Knesset. Lindenstrauss had investigated allegations of impropriety in contributions made to Peres' campaign while running for control of the Labor party, an election he lost to Amir Peretz. The comptroller's report concurs that the donations received by Peres from businessmen were "problematic", however Lindenstrauss has not called for criminal proceedings against Peres. He does determine however that "it would be appropriate for Peres to either return the finds or transfer it to the country's ownership.

The comptroller's decision makes it possible for Peres to push on with a possible bid to contend for the presidency.

According to the report Peres received several thousand dollars worth of donations from American-Jewish businessmen. Peres received 100,000 USD from millionaire Bruce Rapaport who resides in Switzerland, 100,000 USD from billionaire Haim Saban from Los Angeles, California and 120,000 USD from billionaire Daniel Abrams from Palm Beach, Florida.

Peres' attorneys denied the allegations. They say the donations were received during a period of the election cycle that is devoid of laws limiting contributions. Peres acted in compliance with legal advice and even received authorization from the Labor inspection committee to accept the donations.

The comptroller addressed Peres' claim that the contributions were received before the primaries had officially begun, and therefore are not forbidden by law, saying that the matter was a "loophole" that is not becoming of those who take advantage of it. "It is inappropriate for a potential candidate in a preliminary election, even if that election hasn't officially started, to raise limitless funds and receive contributions from tycoons," said Lindenstrauss. "It is unbecoming of a candidate to take advantage of this period of time to receive donations that are forbidden by the law," Lindenstrauss continued, "having said this, as the donations were not received during the 'election period' as they are defined by the law, it is no longer in the jurisdiction of the state comptroller's office to determine if the contributions were legal ones."

"It is inappropriate for candidates competing for public office, particularly for this already serving as Knesset members, to accept significant contributions from business tycoons to finance their campaigns," says Lindenstrauss, warning that the trend risks letting capital gain control of the government, reiterating that the purpose of limiting donations is to maintain the public's trust in the political system and assure equality between candidates in an election.

"The State Comptroller's office believes that it would be fitting if the legislative body and weigh in on the matter soon and work towards establishing normative rules that would ensure the integrity of the process and the faith of the public in its chosen leaders," concludes Justice Lindenstrauss.

Deputy State Comptroller Shmuel Golan added Monday that the office had recommended to Peres that he return the funds, even though the law does not hold him at fault. "Peres chose not to do so," says Golan.

The Comptroller's office emphasized that in their opinion the temporary order regarding the examination of primary campaign funds should be regularized.

The investigation of alleged impropriety on Peres' part was first published by Yedioth Aharonoth in April, after which MK Gilad Arden urged Attorney General Menachem Mazuz to accelerate the investigation after Peres' name was suggested as a potential presidential hopeful.

Netanyahu to return 84,000 shekels

The report presented by Lindenstrauss covers all the financial reports submitted by 360 candidates who ran for spots in 11 political parties. 353 candidates received positive grades in the comptroller's investigation, seven received negative grades.

Likud chairman Benjamin Netanyahu received a negative grade after the comptroller determined that he had submitted his report late, didn't maintain his accounting according to the comptroller's guidelines and spent more than the allowed funds. Negative marks were also given to Amir Peretz, Benjamin Ben Eliezer, Ehud Barak and Matan Vilnai (all Labor). Likud scored better, with Netanyahu the only one with negative marks. Netanyahu will also be the only one required to return any of his funds, a sum of NIS 84,000 (USD 19,463) as he did not receive these contributions during the 'loophole' period.

Miri Hasson and Ilan Marciano contributed to this report.