PARASITES
UP TO USUAL TRICKS
Where
did 'Holocaust'
extortion monies go?
Holocaust
fund investigated for 'unusual' money transfers
The Independent, London Saturday, 1 January 2005
By ANDREW BUNCOMBE
WASHINGTON—The
World Jewish Congress, which has wrung billions of dollars in Holocaust
restitution from European governments and companies, is being investigated
by the authorities in New York following a series of unusual money
transfers of hundreds of thousands of dollars.
The influential
international group, which was founded in the Thirties
to counter growing anti-Semitism, has attracted the attention of Elliot
Spitzer, the New York state attorney general, who is making informal
inquiries into the transfers ordered by Rabbi Israel Singer, the president
of the WJC since 1985. It is possible his office could order a full-scale
inquiry.
The inquiries follow a series of allegations about
the organization's
accounting practices by its most outspoken internal critic, Isi Liebler,
the WJC's senior vice-president. Mr. Liebler, who has declined to
comment in public, has demanded a full independent audit of the
group's finances.
The WJC was established in 1936 to try to counter
growing
anti-Semitism and mobilize the world against the Nazi onslaught.
In recent years the group, which has its international headquarters
in New York, has been responsible for obtaining compensation and
restitution for survivors of the Holocaust and has secured millions
of dollars in payments from Swiss banks.
The investigation by Mr. Spitzer's office is reportedly
focusing on
payments ordered by Rabbi Singer between October 2002 to February
last year. In that five-month period he ordered the transfer of $1.2m
(£630,000) of the WJC's funds to a numbered bank account in
a bank in Geneva. The staff in its Geneva office said they were not
aware of such an account.
In an effort to
overhaul the group's accounting practices, as well as
improve its public image, its chief patron, the billionaire Edgar
Bronfman, has ordered an internal review. That is being carried out
by Stephen Herberts. Mr. Herberts has reportedly met with Mr.
Liebler in Israel to discuss his demands for a full audit.
Mr. Herberts told
The New York Times: "You can't turn around an
organization overnight, but I would say that 70 or 80 per cent of
the
changes have been initiated." He said that Mr. Spitzer's office
had not contacted him but that he was willing to co-operate. "I'm
more than happy to give them anything and everything they may want
to see," he added.
It was reported
by the Jewish Week, a publication for New York's
Jewish community, that Rabbi Singer and Mr. Bronfman have worked together
for more than two decades. Earlier this year they accused Mr. Liebler
of trying to destroy the WJC and discredit Mr. Bronfman by raising
questions about its finances.
Mr. Bronfman tried to oust Mr. Liebler from his position,
calling his
questions "assaults on my tenure, my integrity and my person".
Rabbi Singer has not commented on the investigation
of the money
transfers. Earlier this year he said he would fight any such move.
"There is no scandal, and I'm not going to be threatened,"
he said.
Mr. Liebler's critics claim that he has been motivated
by political
differences with Mr. Bronfman, charges he has denied. The WJC has
been a vocal actor in obtaining payments for survivors of the Holocaust
and has worked closely with the International Commission on Holocaust
Era Insurance Claims.
The organization,
which was set up in 1998, has collected more than $500m for victims.