Agency Orders Study
Of Allegations
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Than 1642-0i60
Jerusalem (JTA) — The an-
nual Assembly of the Jewish
Agency for Israel concluded
last week without directly
addressing the most promi-
nent issue on everyone's
lips: the alleged financial
wrongdoings of its chair-
man, Simcha Dinitz.
But the body's smaller and
more influential board of
governors approved a mea-
sure calling for a study of the
allegations by a legal expert
and the monitoring of the
impact of the allegations on
the agency's fund-raising
campaigns and operations.
Three American delegates
had placed on the
Assembly's agenda a resolu-
tion calling for Mr. Dinitz to
take an immediate leave of
absence.
But the delegates —
Leonard Bebchick, Steven
Fain and Sara Sanditen —
were persuaded by the
chairman of the board of
governors, Mendel Kaplan,
to withdraw the resolution.
The allegations against
Mr. Dinitz, which include
the improper use of Jewish
Agency credit cards to pur-
chase thousands of dollars of
personal items, are the sub-
ject of a police investigation,
requested by Knesset mem-
bers.
Mr. Kaplan has been
under pressure by Assembly
members to take action on
the matter, especially in the
wake of a detailed expose on
the case that appeared June
25 in the Jerusalem Post.
The board of governors
resolution calls for a senior
advisory group assembled by
Mr. Kaplan to monitor the
impact of the allegations on
community fund-raising
efforts and to provide weekly
reports to Mr. Kaplan.
Those reports will then be
evaluated by a series of
specified fund-raising
leaders, after consultation
with the leadership of the
World Zionist Organization.
The Jewish Agency is the
primary beneficiary of the
money raised for Israel by
the United Jewish Appeal
and parallel campaigns
internationally.
Mr. Kaplan also asked
Philadelphia Judge Abra-
ham Gafni to study all the
allegations and report to
him on their accuracy by
July 31.
The resolution cautions
Mr. Gafni to "take into ac-
count" during his investiga-
tion the legal constraints
imposed by the police probe
and the Israeli legal system.
This is a clear effort to avoid
a charge of an obstruction of
justice.
The advisory group is
charged by the resolution to
recommend a course of ac-
tion to Mr. Kaplan by the
end of August.
Publicly, many delegates
here expressed support for
Mr. Dinitz. But. privately,
some expressed doubts about
whether he could remain a
successful fund-raiser in
light of the scandal.
"My faith in Simcha has
not been eroded," said
Hadassah President
Deborah Kaplan. "I believe
that when the history books
are written, his contribu-
tions to the country will be
recognized. No one else could
have brought in half a mill-
ion immigrants in just three
years."
This sentiment was echoed
by Martin Kraar, executive
vice president of the.Council
of Jewish Federations. He
chastised the media for
focusing on the controversy
at the expense of the agen-
cy's achievements.
"The fact is that the press
is not interested in the good
works of Simcha Dinitz or
the Jewish Agency. The
issue has overshadowed the
rest of the Assembly pro-
ceedings, and I think that is
very sad," he said.
UJA President Brian
Lurie likewise defended Mr.
Dinitz's right to remain in
office. But he acknowledged
that organizational leaders
"must also be sensitive to
the needs of their members,
and to address their con-
cerns."
Mr. Lurie added that "now
that the agency has in-
stituted a process" to deal
with allegations of Dinitz's
misconduct, "it's time to
deal with the real issues."
But some leaders are
afraid that the controversy
has already done irreparable
damage to fund-raising
efforts in the Diaspora.
One senior official, who
asked that his name not be
published, said, "Dinitz has
compromised his ability to
function on behalf of the
Jewish Agency. If he re-
mains in office, we will have
an absolute rebellion in the
local federations. It could
even lead to an end of
Diaspora funding."