Tycoon Arcadi Gaydamak Halts Flow of Cash to Israeli Charities

Associates claim the controversial billionaire hindered by ongoing police investigations against him.

TheMarker has learnt that over the past few months, Russian-Israeli tycoon Arcadi Gaydamak not made good on promises to transfer large funds to a number of Israeli charities.

Attorney David Brodetzky, the legal adviser for Gaydamak's Social Justice political party, confirmed Saturday that the billionaire businessman had halted the flow of financial donations.

Gaydamak's donations in recent years had totaled in the tens of millions of dollars. Half a year ago he froze the activities of the Gaydamak Foundation, an organization that was supposed to concentrate the businessman's charitable activities. The foundations offices in Givat Shaul in Jerusalem are now closed.

The tycoon's promises to donate tens of millions of shekels to different charitable organizations were made under much media exposure, with particular attention given to his claims that the state authorities were not fulfilling their role, and that he was merely doing their job for them.

Gaydamak has in the past criticized Israeli politicians for forgetting the Jewish tradition of caring for the poor.

Associates of Gaydamak said Saturday: "Every time that Gaydamak wants to donate, they put a spoke in the wheels in the form of complaints and police investigations. We got to a situation where they investigate the financial source of every donation. It's impossible. If there are claims about the halt of donations, focus on those complaining against Gaydamak."