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Africa-Israel
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passed on about $4 million of the
loan it received as "agent corn-
mission" to the bank accounts of
Doharti, Kelner and Robert 06
Jerusalem (JPFS) — Only three Lackey, the businessman who in-
bidders emerged for a major troduced UMB-London man-
stake in Africa-Israel Invest- agement to Facia's previous
ments, fewer than parent Bank owner, Stefen Hinchliffs. The
money was transferred to secret
Leumi had hoped.
One bid came from Lev bank accounts in Switzerland.
Mr. Hinchliffs is currently be-
Leviev, who has holdings in the
ing
investigated by Scotland
diamond business. A second bid
Yard.
The episode occurred at a
was by U.S. tycoon Ronald Laud-
time
when
Hinchliffs had a very .1
er in partnership with New York
poor
reputation
in England and
investment bank Bear Stearns,
no
one
would
work
with him but
according to a source familiar
Bank
Mizrahi,
a
source
close to
with the bidding.
the
episode
said.
The third bid was submitted
According to the source,
by a South African investment
Mizrahi
expects the suit to im-
group representing Africa-Is-
prove its position and help it re-
rael's minority shareholders.
This third consortium cur- cover the money lost.
General banking insurance al-
rently controls about 8 percent
lows
for recovery only if actual
of the company.
Leumi is selling a block of monetary benefit is proven. Ac-
shares representing about 46.58 cording to the source; Mizrahi ex-
percent of Africa-Israel's share pects the evidence revealed in the
capital and some 54.2 percent of suit is "only the tip of the ice-
the voting rights in the compa- berg."
A UMB spokesperson refused
ny. The bank is compelled to re-
duce its ownership in the to comment on the episode.
62-year-old holding company to
25 percent to comply with Israel's
banking law.
Bank Sues
For Bribery
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Jerusalem (JPFS) — United
Mizrahi Bank filed a suit against
a former general-manager of
UMB-London and his deputy for
allegedly receiving bribes from
the Facia chain.
The episode is connected to the
disclosure of irregularities at the
London branch in the third quar-
ter of 1995.
As a result, UMB made a spe-
cial provision of $27 million in
1995 to cover potential bad loans,
resulting from the London
branch's failure to follow
Mizrahi's credit procedures. Fol-
lowing the bank's revelation of
the scandal, branch general-
manager Rafi Kelner and his
deputy John Doharti were fired.
UMB filed the suit at the Lon-
don Court against Mr. Klener
and Mr. Doharti for allegedly re-
ceiving bribes from Facia in ex-
change for organizing a $38
million loan.
The UK-based Facia retail
chain was made up of about 10
retail stores in London that op-
erated under one umbrella. The
loan was given for very little col-
lateral and was above the UK's
approved credit ceiling.
Most of the bank's suspicions
are based on the investigation by
KPMG, the accounting firm
which was appointed receiver of
Facia. The chain collapsed in
July, leaving accumulated debts
of about $330 million, including
the debt to UMB London.
The receiver found that Facia
Christian Tourism
Nears Disaster
Jeruasalem (JPFS) — German di
tourism officials predicted a "dis-
aster" for the Israel tourist in-
dustry unless the political
situation changes.
Gisela Meyer-Amler, manag-
ing director of Biblische Reisen,
and Klaus Behrendt, the associ-
ate director for travel to Israel,
predicted fewer visits from Eu-.
ropean Christians — one of the
mainstays of Israel's tourism
market. The two were on a visit
with a group of 50 of the compa-
ny's employees, the first time
they had organized such a tour.
"We have lived through every
crisis — the Six-Day War, the
Yom Kippur War, the war in
Lebanon in 1982, the intifada,
even the Gulf War — but we
have never seen such a dramat-
ic drop in 'reservations," Mr. 411
Behrendt said.
Biblische Reisen was estab-
lished 30 years ago as a joint pro-
ject of the Catholic and
Protestant Bible Societies in Ger-
many. It handles some 40,000
travelers a year, with about half
of them going to Israel and a mi-
nority of these also visiting neigh-
boring countries. According to
Meyer-Amler, the company was1
the first in Germany to take
groups to Israel on El Al, which
remains its main carrier, along
with some Arkia charters.
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