Hirchson says ashamed of way he received funds
Former finance minister testifies for first time in his trial, addressing allegations that he stole millions of shekels. 'I can't explain it and can’t forgive myself,' he tells judge. Advocate: He gave back the money
Hirchson's lawyer stated that the former minister had returned more than NIS 1 million (about $ 246,608) to the National Labor Federation (NLF).
At the start of the defense phase in his trial, Hirchson told Judge Bracha Ofir-Tom that "reaching this situation, from the position of finance minister to the defendant stand, is very difficult for me. There hasn't been one night in which I managed to sleep since this affair began.
"I'm tormented every night and every minute, and keep on asking myself why I accepted the money in cash."
Addressing the millions he allegedly took unlawfully, Hirchson said, "I'll try and explain that I deserved every penny, but my way was wrong and I can't explain it. I don’t know how to explain it. Blindness? Numbness? I'm utterly ashamed of the way I received the money. I can't explain it and I can't forgive myself."
Hirchson was one of the two only defendants involved in the affair who did not sign a plea bargain. The former finance minister was indicted half a year ago on multiple counts of larceny, executive theft, fraud, breach of trust, illicitly obtaining funds, money laundering and falsifying corporate documents in April, for allegedly embezzling about NIS 4 million (over $1.2 million) during his tenure as head of the NLF, between 1998 and 2005.
According to the indictment, some of the money was handed over to Hirchson in cash and in envelopes.
In December, the State entered another plea in the case, this time with Amatzia Boner, the former comptroller of the Nili Association.
During Tuesday's court session, Hirchson was questioned repeatedly about his actions, with the judge adding questions of her own to those of the prosecution.
Justice Ofir-Tom asked Hirchson about the NIS 25,000 (About $6,100) monthly payments he used to receive in cash from the late Gideon Ben-Zur, the NLF's former comptroller, focusing her questions on Ben-Zur's mandate to withdraw funds from the organization.
Hirchson stated, "I didn’t want to take a check since being a Knesset member it could be considered a second salary. Ben-Zur suggested I take cash so that no one would be the wiser. I admit to turning a blind eye (to protocol)."
"Every institute must account for all funds and expenditures," insisted the judge. "This wasn't a grocery store." Hirchson replied by saying, "I'm sorry, maybe it was a grocery store."
The former finance minister also testified as to the cash found in his possession while he was accompanying the March of the Living in Poland. "It is a well know fact that you need cash in Eastern Europe and sometimes I would take cash loans from the NLF."
'We won’t defend the way'
Hirchson's lawyer, Yaakov Weinroth, told the court that he had returned the funds taken by his client – some NIS 1.16 million – to the NLF on Monday, subject to an examination into whether he deserves the money.
"We thought they should keep the money for public hygiene purposes," he said, adding that he would try and convince the court that Hirchson was entitled to these funds after working at the NLF for more than 30 years and being forced to retire after being elected to the Knesset.
The lawyer said the former minister did not accept a seniority pension he was entitled to, which included sums much higher than the ones he is accused of stealing, and relinquished his rights.
"We won't defend the way," Weinroth noted. "He'll explain why it happened and how it happened. He had his reasons, but they are not justified."
On Sunday, the Tel Aviv District Court sentenced Yitzhak Russo, the former NLF director-general, to 15 months in prison and two years probation for his part in the pending fraud case against Hirchson.
Russo admitted and was convicted of multiple counts of executive theft, fraud, breach of trust and money laundering, as part of a plea bargain he had struck with the State Prosecutor's Office. The court also ordered him to pay NIS 300,000 (about $73,777) in damages.
In December, the State entered another plea in the case, this time with Amatzia Boner, the former comptroller of the Nili Association. The court found Boner guilty of fraud and theft and sentenced him to 40 months in prison for his part in the Hirchson fraud case.
Prior to Boner's conviction, the State was able to convict two other senior NLF officials for their part in the case: Ovadia Cohen, former head of the NLF's financial division, and Ronit Garti, a senior NLF accountant.
Judge Ofir-Tom hinted in Russo's sentence that Hirchson himself should have signed a plea bargain.
"It appears that all there is to say in this gloomy affair has been said once and twice and more, as part of the sentences given in the matters of the four other people involved in the affair, who were wise enough to sign plea deals with the prosecution and end their affairs," she said.
Avi Cohen contributed to this report
