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MDA Director-General Questioned on Suspicion of Tax Evasion


Magen David Adom Eli Bin and the organization’s financial director Ofir Dan were summoned for questioning on Tuesday on suspicion of tax and customs crimes, questioned for eight hours. Allegations point to improprieties regarding NIS 176 million, but while suspected of law-breaking, Bin is not suspected of pocketing funds. Towards evening the two were released on NIS 50,000 bail, and they are prohibited from discussing the case with any MDA employees. Bin is also grounded, instructed he may not leave the country for six months.

The investigation pertains to MDA’s special status as the primary emergency medical service and blood bank provider for the State of Israel, entitling the organization to duty free imports of ambulances and medical supplies.

The allegations include using vehicles imported as MDA ambulances for other purposes, other organizations and a vehicle parts operation. In all the suspect cases, a permit was not granted and yet they benefited from the MDA customs waver. This includes giving ambulances (vans) to the Israel Electric Company, private companies and regional councils for long-term use, vehicles that were donated by people who respond to the Friends of MDA appeals around the world, as well as selling parts taken from the new vehicles, which MDA receives without paying taxes. Similar suspicions surround the sale of medical equipment imported tax-free for MDA use, but sold for profit, once again, abusing donor funds.

The first aid kits and other medical equipment were allegedly sold for a handsome profit while MDA did not pay customs of value added tax as required by law. It is important that readers realize that the cost of a duty free ambulance is approximately one-third of a similar vehicle subject to customs and taxes.

There are also allegations that MDA sold ambulances to Israel Police, the IDF, and others, tax free.

Visibly agitated Bin told reporters he is in good spirits because he knows he has done nothing wrong. His attorney explained Bin is not involved in the decision-making process pertaining to the allegations. In addition, during the two months of the investigation, his client has been totally cooperative with police, concluding that even if something has taken place, the matter at worst is civilian or administrative, not criminal.

This is by far not the first scandal involving MDA, and back in the late 1970s and early 1980s, prominent world-recognized trauma physician Nancy Caroline resigned as the medical director after the threats against her become too serious. Caroline, a pioneer in pre-hospital advanced life support in the USA immigrated to Israel in 1977, to become the first medical director of MDA. She had begun uncovering a major ring operating in a fashion similar to the allegations today, but then, the donated vehicles were being sold for personal profit. She decided to resign, in frustration and fear, in 1981.

Over the years, the organization’s volunteers and paid staff have on several occasions shouted that they are simply not treated properly while upper management continues to spend funds improperly; monies intended to serve the people of Israel. Many an ambulance volunteer/employee has documented a shortage of supplies and compelled to reuse equipment intended for one-time use, like oropharyngeal airways, instructed to save money while upper management operated as if they were heading a major for-profit company.

This latest MDA scandal follows the recent arrest of MDA spokesman Yerucham Mandela in March, who was taken into custody after stopped for speeding and found to be impersonating a policeman.

Tax inspectors conducted a search for documents in the main MDA office in Tel Aviv on Wednesday morning in connection to the ongoing investigation.

(Yechiel Spira – YWN Israel)



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