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Goldnopf family salary scandal: millions of shekels from Israel’s education budget

Itzhak Goldnopf. Photo: Channel 7.

The family of Housing Minister Yitzhak Goldnopf earns impressive profits from working in the educational networks associated with him: The 16 members of the Goldnopf family employed in the Beit Ya’akov kindergarten and Petahia rehabilitation centres earned a total of NIS 3.8 million in 2023. Meanwhile, government funding for this network increased by 33%, which only deepens the conflict of interest in which Minister Goldnopf found himself. This was reported by the TimeUkraineIsrael portal with reference to the Israeli publication Calcalist.

According to Calcalist, the Goldnopf family’s payroll was NIS 3.8 million in 2023, with 10 family members working for the Beit Ya’akov network and another six for Petahia, which runs rehabilitation centres and special education. At the same time, the total budget of Beit Ya’akov, which is funded by the state to support kindergartens, increased by 33% in 2023, from NIS 20 million to NIS 27 million, according to a publication by the Ministry of Justice. This raises particular questions about the position of the minister, who supports bills to increase funding for ultra-Orthodox educational institutions, including those controlled by his family.

Deepening conflict of interest

Critics have highlighted that the increase in public funds for the network in which the minister’s family operates creates a significant conflict of interest, especially given the minister’s recent support for legislation that promotes tax evasion and the expansion of funding for ultra-Orthodox educational networks. Against the backdrop of such legislative initiatives, several state bodies, including the Ministry of Justice, have expressed concern about the conflict of interest, which could have serious consequences for the country’s budget.

The role of the Goldnopf family in the Beit Ya’akov network

The Beit Ya’akov kindergarten chain, which serves about 50,000 children, has 354 kindergartens and is one of the largest employers in the ultra-Orthodox sector. Yitzhak Goldnopf, who served as the head of the association until the end of 2022, handed over the management to his son Israel after his appointment as minister. His son’s annual salary is 700,000 shekels, including compensation payments, pension and insurance income.

The position of head of the Beit Ya’akov network was also supplemented by a new role of “network president”, which was taken by the minister’s wife, Rivka Goldnopf. Her salary is about NIS 30,000 per month. This newly created position does not fall under the standards of the Ministry of Education, which provides additional benefits and avoids salary restrictions.

Financial statements and internal agreements

In addition, according to financial reports, the Beit Ya’akov network regularly transfers funds between its divisions, including an amount of NIS 1.9 million per year to cover the costs of rent, transport, food and other expenses of the Goldnopf family members. According to the association, the chain employs about 11,000 people in total, and the salaries of family members account for only 1.3% of the total payroll, which, according to Goldnopf, meets all legal requirements.

Reaction to criticism and legal steps

In response to the accusations, Minister Goldnopf noted that the Beit Ya’akov and Petahia chains fully comply with the law and the recommendations of the Ministry of Justice. However, last week, the government’s legal adviser recommended that Goldnopf abstain from voting on the kindergarten funding bills, as there was a real threat of a conflict of interest.

The situation around the Goldnopf family reveals a complex mix of politics, family ties and budget, which once again raises questions about transparency and accountability in the Israeli government.