A State Comptroller's report on questionable financial practices and cronyism within the Central Election Committee [CEC] has revealed that in Hadera and the southern Dan regions, some 90 percent of the employees of regional election committees are related to one another.

State Comptroller Micha Lindenstrauss, releasing the report Tuesday, said that the CEC has cost state coffers millions of shekels in squandered government funds.

The report discovered widespread financial waste within the managerial headquarters of the election committee, in connection with the hiring of workers and acquiring of hi-tech equipment on election day.

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The comptroller's report revealed that nearly half of all CEC employees working in regional election offices had at least one family member who worked in the same office.

For example, 19 members of the same family were found to be employed in the Acre regional election council, and in the Hadera and southern Dan election councils, over 89 percent of employees came from the same families.

Lindenstrauss wrote that an Israeli election should not be considered successful just because there were no technical mishaps and the votes were counted in a timely and accurate manner, but that a successful election must also display efficiency, frugality, and competent management.

The comptroller revealed that the Election Committee gave business to computing service provider Malam Systems without a tender and without an official exemption on issuuing a tender. In addition, other providers were not allowed to compete with Malam, and there was no way to bid for lower prices for the firm's services.

The report also found that the election committee's accountant didn't adequately check the contract with Malam before signing it, thereby failing to detect NIS 127,350 in misappropriated funds. The committee also forgot to update the day's exchange rate, which had risen 2.54 percent without the contract being adjusted accordingly.

The committee's accountant also authorized a number of general payments within the terms of the contracts, whose origins are uncertain. For instance, the committee shelled out NIS 186,000 for a program designed for 'checking candidates for the Knesset," but it is not known where the money went.

The comptroller also found that the Election Committee paid Malam several times more for certain services comparable to those paid by the Interior Ministry. According to the report, the amount paid to Malam for an hour of work was six times higher than that paid to other companies.

Lindenstrauss further found that almost half of the employees of regional Election Committees had a close family member who worked also in the committee.

The committee also checked the monthly wage reports of 50 workers, finding that 13 of them showed inconsistencies. For instance, 9 of the 13 employees were found to have been paid twice for working certain hours.

The comptroller stated in his report that even if election officials are appointed only every few years, resources must still be allocated according to sound managerial principles.

The comptroller recommended streamlining the hiring process of committee employees and implementing measures to ensure equal employment opportunities for all candidates.

Knesset Speaker Dalia Itzik said in response to the ruling, "We are closely studying the committee's findings and will apply them and fix the areas of concern."

Itzik also pledged that Malam's monopoly on providing computer services to the CEC would be reviewed, and that future computer service for the committee would be "updated and trustworthy."

"With regard to the hiring of workers, the need to organize elections within 90 days will require the committee to enlist workers with great experience, expertise, and competence in the organizing of an election," Itzik said.