World Jewish Congress assembly (Archive Photo)
צילום: לע"מ
Problems found at World Jewish Congress
New York state investigation finds problems with money management, record keeping in organization; however, no criminal activity revealed
A leader of the World Jewish Congress will be barred from taking a fiscal role in the organization, following a New York state investigation that uncovered problems with money management and record keeping but revealed no criminal activity.
Under a settlement announced Tuesday by the New York state attorney general's office, Rabbi Israel Singer will no longer have any connection with fundraising or financial management at the WJC, which promotes Jewish rights and has collected millions of dollars in Holocaust restitution payments on behalf of victims around the globe.
"The organizations lacked appropriate financial controls to safeguard charitable assets and failed to keep adequate records regarding their fundraising activities," the attorney general's office said in a release, referring to the international WJC and its American affiliate.
The state found that Singer, who has already stepped down as chair of the WJC's governing board, had transferred USD 1.2 million to European bank accounts with the intent of setting up an employee pension fund. But steps were not taken to ensure the money would eventually return to the organization, the release said.
The organization also inappropriately paid for some employees' personal expenses, including car payments and personal credit card charges, the state audit found. Singer received more than USD 300,000 in such payments, the release said.
'We had nothing to hide'
"I sincerely regret that at times my almost exclusive focus on execution of our mission diverted my attention from important administrative activities," Singer, now chairman of the group's Policy Council, said in a written statement.
WJC President Edgar M. Bronfman said the organization had given the attorney general's office "unfettered access to our entire worldwide organization."
"Our transparency and cooperation revealed that we had nothing to hide," he said in a release.
As part of the settlement, the New York-based WJC agreed to establish a permanent audit committee and chief financial officer position. It will also computerize all its financial records.
Elan Steinberg, a former executive director who is no longer affiliated with the WJC, will also be barred from taking a fiscal role with the group.
The state opened its investigation in late 2004 after outgoing WJC Vice President Isi Leibler claimed that some USD 1.5 million given to the organization was secretly siphoned to a Swiss bank account.
