Israel's State Comptroller Investigates GSF

Israel's State Comptroller is currently investigating the financial collapse of the General Sick Fund, which provides health care for about 70% of the population (Marketletter June 27), and may issue a special report.

At a session of the parliamentary state control committee, Finance minister Avraham Shochat and the Secretary-General of the histadrut, Haim Ramon, welcomed the probe, which could also lead to a parliamentary investigation. The Comptroller is considering claims that politically-motivated considerations by mr Shochat and the Histadrut, before its elections in May, were instrumental in the GSF's problems.

This announcement comes straight after the publication of a report by the Comptroller on the implementation of the GSF recovery plan agreed in March 1993 by the Fund, the histadrut and the Treasury, to be implemented during 1993-95. The agreement outlined what the three parties would each contribute in order to make up 1993's anticipated deficit of NIS1.12 billion ($395 million).