The financial scandal surrounding Prime Minister Yitzhak Rabin’s Labor Party deepened this week, as senior party members were named in allegations that they had siphoned off funds belonging to the Histadrut labor federation for use in their 1992 election campaigns.
Further waves were caused by reports that a group of eight young Labor Party leaders was calling for an overthrow of the current party leadership.
As Labor officials expressed hope that the growing scandal would not hurt their chances in the next election, police continued their investigation into the alleged embezzlement of hundreds of thousands of dollars of Histadrut funds by senior party officials.
According to Israeli news reports Wednesday, Histadrut officials have submitted the findings of an internal inquiry to the National Fraud Squad.
The report named five senior Labor and Histadrut officials in connection with suspected embezzlement, breach of trust and fraud.
These included Transportation Minister Yisrael Kessar, former Histadrut Secretary General Haim Haberfeld, Deputy Industry Minister Masha Lubelski, former Histadrut Treasurer Arthur Yisraelovitch and Knesset member Avi Yehezkel.
Israel Radio quoted Police Minister Moshe Shahal as saying that charges would be issued soon.
Kessar, a former secretary-general of Histadrut, denied the allegations against him.
Meanwhile, a group of eight Labor Knesset members met Tuesday night and reportedly called for the overthrow of the current Labor Party leadership. The group included Histadrut leader Haim Ramon, Deputy Foreign minister Yossi Beilin and Avraham Burg, acting chairman of the Jewish Agency.
Burg told reporters after the meeting that the group felt that Rabin should be replaced.
But Ramon denied that there was any plot to overthrow Rabin and his ministers.
Ramon, who bolted from the ranks of Labor when he launched his successful election bid for the Histadrut leadership last year, has reportedly been looking for a way to rejoin the party. He also is believed to have his own aspirations for the premiership.
But Ramon said Wednesday that he fully backed Rabin.
“I have said it in past, and will repeat it now. I will support the prime minister as candidate to the next prime ministership in the next election, and I will do everything to [get him] elected, regardless of which party I will be in myself,” Ramon said.
After a meeting with Rabin on Wednesday evening, Ramon said he would ask the “group of eight” to moderate their statements during the next few days.
Labor officials acknowledged that the Histadrut scandal could have a negative impact on the party’s prospects if elections were held now.
But they maintained that there was time before the June 1996 national elections to regain the voters’ favor.
“No doubt about it, this affair can hurt the chances of the Labor party for the next elections,” Tourism Minister Uzi Baram said.
“If the elections were to take place within a week, the picture is very clear,” he said. “But we have more than 18 months, and we can improve the situation.” of the next
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