The Bank of Israel has for years neglected to detail salary increases in its reports to the the Finance Ministry's supervisor of wages, Bank of Israel Director General Yaakov Danon told the Knesset State Control Committee on Monday.

The unreported sums count to some tens of millions of shekels and the matter is now under police investigation, Danon said, responding to a state comptroller report on Bank of Israel wages.

Danon added that upon entering his position - which coincided with Stanley Fischer's appointment as Bank of Israel governor - he ordered a corrected report of wage increases in 2003-2004.

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"We found very problematic findings on the matter of wages, some of which appear in the state comptroller's report and some in the police investigation. The Bank of Israel submitted a deficient report to the treasury's wage supervisor," said Danon.

The director general emphasized that "much of this has been resolved by steps taken by the bank management when it was able to. Other steps will be implemented when we, together with the workers committee, reach a detailed draft agreement to submit to the treasury's wage supervisor.

According to Danon, senior members of the bank administration received retirement payment of some NIS 2.8 million more than was budgeted for pensions. This occurred, he said, after n agreement had already been reached with the treasury on a maximum compensation payment of NIS 1.8 million shekel.