Knesset panel criticizes Israeli government, banks over restitution

The Israeli government and banks owe the survivors of Holocaust victims some US$ 31.5 million in compensation from dormant accounts, a parliamentary inquiry in Israel has found. After an investigation that lasted more than five years, the Knesset panel criticized the Israeli government, which had become the custodian of many accounts after the state was established in 1948, and private banks for not trying to make restitution earlier. “The banks did not act vigorously to return the funds to their owners,” the report says, calling for legislation that would allow the return of the money to account owners or their heirs. With interest added, the government is said to owe US$ 23 million and Bank Leumi some US$ 8.1 million. Smaller banks reportedly have debts ranging from US$ 6,000 to US$ 300,000.