WJC funds unaccounted for, Swiss Jewish leader says
Some USD 3.8 million in funds owned by World Jewish Congress in Switzerland ‘more or less disappeared,’ Swiss Federation of Jewish Communities president tells Ynetnews. Official audit finds no criminal offences
"The money went out in the forms of checks to the WJC in Geneva. No one knows who got the money, so it more or less disappeared," Donath said. He added that "there was no proof of criminal or penal offences," saying instead that the irregularities were caused by archaic finance management at the WJC.
"The World Jewish Congress has already started a more modern way of bookkeeping. For 10 years, we saw just handwritten accounting," the president said.
The unaccounted sums first appeared in a report released in 2005 by the international accounting firm Price Waterhouse and Coopers, which found the sum to be "un-reconciled."
The report stated: "…We have not seen any indication of embezzlement of money held by WJC Geneva from the transactions… there are however significant un-reconciled cash withdrawals where there is no documentation of the usage of the funds."
A year ago, New York’s Attorney General, Elliot Spitzer, said in a report that the WJC lacked proper financial control, though it too said there was no evidence of any criminal wrong-doing.
'Defamation campaign by the WJC'
A letter addressed to Edgar Bronfman, President of the WJC, on January 30 by Donath contained a charge of "poor governance."
"The SFJC fails to understand why it took over two and half years to receive this information which regrettably substantiates the perceived impression of poor governance that made possible the financial irregularities which were established to have occurred," Donath wrote.
"The SFJC does not understand why it as well as its leaders have been subject to a defamation campaign by the WJC, which until today has remained without any apologies," Donath's letter added.
"It is now essential for the WJC to draw all the consequences of what has been uncovered and to remove from office the persons who are responsible for the lack of compliance and corporate governance," Donath said.
Jerusalem-based attorney Jonathan Leibler told Ynetnews that the WJC blocked the Swiss Jewish community from seeing the report for two years.
Jonathan's father, Isi, is the former vice president of the World Jewish Congress who was ousted after entering into conflict with a senior WJC official over finances.
Meanwhile, US billionaire Ron Lauder has recently announced his candidacy to replace Bronfman during elections to be held in 2009. Lauder has been reported as criticizing Bronfman's plan to hand control of the WJC to his son, Mathew, until the end of his term.
