Yadlin affair
Encyclopedia
The Yadlin Affair refers to a political corruption
scandal that broke in Israel
in 1976, involving senior members of the Labor Party (then the major faction in the Alignment
). It is often seen as one of the reasons for the "revolution" of the 1977 elections
.
began publishing investigations regarding illegitimate financial transactions concerning senior members of the labor movement and the party funds. The names mentioned included Asher Yadlin, who was about to be appointed Governor of the Bank of Israel
. Yadlin was known to be a gambling buff (favoring the Las Vegas
roulette table) with an eye for pretty women, He was also a major fund raiser for the Labor Party; since 1973, he has headed Israel's huge Kupat Holim
health-insurance program. The reports also mentioned Avraham Ofer
, Yitzhak Rabin
's Minister of Housing. The investigations suggested bribery, and the reporter Yigal Laviv pressed charges.
decided, on September 5, to appoint Yadlin, former head of the Histadrut
's economic enterprises, governor of the Bank of Israel to succeed Moshe Sanbar
on November 1. On the day after the cabinet decision, Police Minister Shlomo Hillel
and Attorney-General Aharon Barak
were informed that the police had been inquiring into allegations against Yadlin of improper conduct in the management of Kupat Holim. Yadlin declared that the allegations were without basis and that he would welcome an investigation.
After a month of intensive police investigation, Yadlin was detained for interrogation on suspicion of having accepted bribes and undercover commissions in transactions affecting Kupat Holim. On October 24 the cabinet resolved, without prejudging the charges against Yadlin, that it could no longer delay the appointment, and named Director-General of the Treasury Arnon Gafni as governor of the Bank of Israel.
There was considerable criticism of the daily publicity by the press to unproven rumors of charges against Yadlin, which were believed to have been fed by unauthorized disclosures from police sources. In mid-December Yadlin was charged with taking bribes totaling I£ 280,000, as well as other offenses, and was remanded in custody until his trial. On March 14, 1977, Yadlin pleaded guilty to some of the charges, involving bribes totaling I£ 124,000, but claimed that he had handed over
I£ 80,000 of the money to Labor party funds, adding that he had raised "millions" for the party. The judge did not accept his claim and sentenced him to five years' imprisonment and a fine of I£ 250,000. Further charges were to be investigated by the police after consideration of Yadlin's appeal.
and his supporters had jumped on the Yadlin scandal as proof of Rabin's poor judgment in making appointments. For the left, it showed that the Labor Party had lost track of its ideological socialist
roots. For the Israeli right, it was evidence of the Labor Party's corruptibility. It is widely regarded as one of the main causes of the Labor party's downfall in the elections.
Yadlin was released from prison in 1981 and subsequently emigrated to the United States
. Talia Livni, Yadlin's common law wife
, was a lawyer who assisted him in legal matters. She married him while he was in jail, but divorced him after he emigrated. Dalia, Yadlin's ex-wife, supported him and tried to present him as a pawn in the party's hands and as a victim of its "method".
Ofer, Whose name was associated with the Yadlin affair as well as another one, committed suicide on January 3, 1977.
Barak was seen as a relentless fighter against corruption. He was later appointed to the Supreme Court of Israel
. Some argue that his role in the Yadlin affair helped him carry out his famous judicial activist positions.
The "Yadlin House", a building in north Tel Aviv
, whose construction was linked to the bribe money, remained unfinished. In 2005 it was sold and is designated for demolition.
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
scandal that broke in Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
in 1976, involving senior members of the Labor Party (then the major faction in the Alignment
Alignment (political party)
The Alignment was an alliance of the major left-wing parties in Israel between the 1960s and 1990s. It was established in 1965 as an alliance of Mapai and Ahdut HaAvoda but was dissolved three years later when the two parties and Rafi formally merged into the Israeli Labor Party...
). It is often seen as one of the reasons for the "revolution" of the 1977 elections
Israeli legislative election, 1977
The Elections for the ninth Knesset were held on 17 May 1977. For the first time in Israeli political history, the right-wing, led by Likud, won the election, ending almost 30 years of rule by the left-wing Alignment and its predecessor, Mapai...
.
Background
In 1976, Haolam HazehHaolam Hazeh
HaOlam HaZeh was a weekly news magazine published in Israel until 1993.The magazine was founded in 1937 under the name Tesha BaErev but was renamed HaOlam HaZeh in 1946...
began publishing investigations regarding illegitimate financial transactions concerning senior members of the labor movement and the party funds. The names mentioned included Asher Yadlin, who was about to be appointed Governor of the Bank of Israel
Bank of Israel
The Bank of Israel is the central bank of Israel. It is located in Kiryat HaMemshala in Israel's capital city of Jerusalem, with a branch office in Tel Aviv. The current governor is Stanley Fischer.-History:...
. Yadlin was known to be a gambling buff (favoring the Las Vegas
Las Vegas Strip
The Las Vegas Strip is an approximately stretch of Las Vegas Boulevard in Clark County, Nevada; adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester...
roulette table) with an eye for pretty women, He was also a major fund raiser for the Labor Party; since 1973, he has headed Israel's huge Kupat Holim
Clalit
Clalit, also Klalit is one of Israel's leading health service organizations. Widely known as Kupat Holim Clalit, it was established in 1911 as a mutual aid society...
health-insurance program. The reports also mentioned Avraham Ofer
Avraham Ofer
Avraham Ofer was an Israeli politician, famous for committing suicide following the eruption of a corruption scandal.- Biography :Ofer was born in the Khorostkov shtetl in Poland in 1922, and immigrated to Mandate Palestine in 1933. He went to High School in Jerusalem and studied in the Hebrew...
, Yitzhak Rabin
Yitzhak Rabin
' was an Israeli politician, statesman and general. He was the fifth Prime Minister of Israel, serving two terms in office, 1974–77 and 1992 until his assassination in 1995....
's Minister of Housing. The investigations suggested bribery, and the reporter Yigal Laviv pressed charges.
Scandal
The cabinetCabinet of Israel
The Cabinet of Israel is a formal body composed of government officials called ministers, chosen and led by the Prime Minister. The Prime Minister must appoint members based on the distribution of votes to political parties during legislative elections, and its composition must be approved by a...
decided, on September 5, to appoint Yadlin, former head of the Histadrut
Histadrut
HaHistadrut HaKlalit shel HaOvdim B'Eretz Yisrael , known as the Histadrut, is Israel's organization of trade unions. Established in December 1920 during the British Mandate for Palestine, it became one of the most powerful institutions of the State of Israel.-History:The Histadrut was founded in...
's economic enterprises, governor of the Bank of Israel to succeed Moshe Sanbar
Moshe Sanbar
Moshe Sanbar is an economist and Israeli public figure. He served as governor of the Bank of Israel during 1971–1976. The Moshe Sanbar Institute for Applied Economic Research was named in his honor....
on November 1. On the day after the cabinet decision, Police Minister Shlomo Hillel
Shlomo Hillel
Shlomo Hillel is an Iraqi-born Israeli diplomat and politician who served as Speaker of the Knesset, Minister of Police and Minister of Internal Affairs. He was also an ambassador to several countries in Africa.-Biography:...
and Attorney-General Aharon Barak
Aharon Barak
Aharon Barak is a Professor of Law at the Interdisciplinary Center in Herzliya and a lecturer in law at the Hebrew University of Jerusalem, the Yale Law School, and the University of Toronto Faculty of Law....
were informed that the police had been inquiring into allegations against Yadlin of improper conduct in the management of Kupat Holim. Yadlin declared that the allegations were without basis and that he would welcome an investigation.
After a month of intensive police investigation, Yadlin was detained for interrogation on suspicion of having accepted bribes and undercover commissions in transactions affecting Kupat Holim. On October 24 the cabinet resolved, without prejudging the charges against Yadlin, that it could no longer delay the appointment, and named Director-General of the Treasury Arnon Gafni as governor of the Bank of Israel.
There was considerable criticism of the daily publicity by the press to unproven rumors of charges against Yadlin, which were believed to have been fed by unauthorized disclosures from police sources. In mid-December Yadlin was charged with taking bribes totaling I£ 280,000, as well as other offenses, and was remanded in custody until his trial. On March 14, 1977, Yadlin pleaded guilty to some of the charges, involving bribes totaling I£ 124,000, but claimed that he had handed over
I£ 80,000 of the money to Labor party funds, adding that he had raised "millions" for the party. The judge did not accept his claim and sentenced him to five years' imprisonment and a fine of I£ 250,000. Further charges were to be investigated by the police after consideration of Yadlin's appeal.
Aftermath
Towards the upcoming elections, Shimon PeresShimon Peres
GCMG is the ninth President of the State of Israel. Peres served twice as the eighth Prime Minister of Israel and once as Interim Prime Minister, and has been a member of 12 cabinets in a political career spanning over 66 years...
and his supporters had jumped on the Yadlin scandal as proof of Rabin's poor judgment in making appointments. For the left, it showed that the Labor Party had lost track of its ideological socialist
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
roots. For the Israeli right, it was evidence of the Labor Party's corruptibility. It is widely regarded as one of the main causes of the Labor party's downfall in the elections.
Yadlin was released from prison in 1981 and subsequently emigrated to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Talia Livni, Yadlin's common law wife
Common Law Wife
"Common Law Wife" is a song by the funk band Parliament. Recorded in 1972, it was released as a bonus track on the 2003 reissue of the album Chocolate City...
, was a lawyer who assisted him in legal matters. She married him while he was in jail, but divorced him after he emigrated. Dalia, Yadlin's ex-wife, supported him and tried to present him as a pawn in the party's hands and as a victim of its "method".
Ofer, Whose name was associated with the Yadlin affair as well as another one, committed suicide on January 3, 1977.
Barak was seen as a relentless fighter against corruption. He was later appointed to the Supreme Court of Israel
Supreme Court of Israel
The Supreme Court is at the head of the court system and highest judicial instance in Israel. The Supreme Court sits in Jerusalem.The area of its jurisdiction is all of Israel and the Israeli-occupied territories. A ruling of the Supreme Court is binding upon every court, other than the Supreme...
. Some argue that his role in the Yadlin affair helped him carry out his famous judicial activist positions.
The "Yadlin House", a building in north Tel Aviv
Tel Aviv
Tel Aviv , officially Tel Aviv-Yafo , is the second most populous city in Israel, with a population of 404,400 on a land area of . The city is located on the Israeli Mediterranean coastline in west-central Israel. It is the largest and most populous city in the metropolitan area of Gush Dan, with...
, whose construction was linked to the bribe money, remained unfinished. In 2005 it was sold and is designated for demolition.
External links
- Yadlin Affair, 1975 Maariv, 17 December 2007