• Published 04:45 24.03.10
  • Latest update 05:57 24.03.10

Rocket-battered Sderot faces bankruptcy

Qassam fire has tailed off since lats year's Gaza war - but so have charity donations.

By Yanir Yagna Tags: Israel news

The mayor and city treasurer of the western Negev city of Sderot say their town is tottering on the brink of bankruptcy.

Treasurer Shimon Peretz says that the cumulative deficit of the municipality stands at NIS 28 million.

Mayor David Buskila and Peretz claim that the deficit is the result of the cessation in the flow of charitable donations to the municipality, which which ceased with the flow of thousands of Qassam rockets which rained down from nearby Gaza for years. The rockets have mostly stopped since Operation Cast Lead over a year ago.

The global economic crisis has also resulted in a significant drop in the support provided to various institutions in the city.

Peretz warns that the collapse of the city will occur in the coming months "unless a miracle happens."

Wages to city employees are regularly delayed, the assistance from the Finance Ministry was cut by more than NIS 10 million, and some employees are being laid off because of a stringent rehabilitation program instituted by the Interior Ministry.

During the past decade, Sderot benefited from donations to the tune of nearly NIS 25 million per year. Much of the aid came from Jewish communities throughout the world, organizations and large companies in Israel, and the Jewish Agency.

However, following Israel's Gaza offensive the assistance dropped dramatically and municipal officials cannot count on anything beyond five figures.

"The situation in the city was bad because of the Qassams," Peretz said. "For eight years every one contributed to the city ... They invested hundreds of millions of shekels. Now we can barely receive any assistance. We are on the verge of total collapse."

Meanwhile 10 city employees were laid off and 90 more will soon follow. "We will not be able to manage economically, and then the government ministries will blame it on faulty management."

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  • 12. 1 0
    Sderot bankrupt ?
    • gorm
    • 25.03.10
    • 09:48

    Since the rockets stopped, the cashflow stopped / got much less. I think Sderot is absolutely symbolical for all of Israel. This country needs the conflict like it needs the air to breathe. What would become of this "state" if it wasn`t for US and EU taxpayer dollars ? This money, however would mostlikely not flow, if Israel could not claim to be the victim of "evil people, that also threaten the western world" The Americans were stupid enough to go along with that for decades and the Europeans were consumed with guilt and thus went along as well. Although here and there one sees a spark of change, but nothing substantial. And so my friends, the conflict will continue. Or, with a bit of "luck" Israel might be able to create a new conflict with Iran. They are well on their way. And mostlikely, the intelligent US will fight it for them. Or will they... ?

  • 11. 0 0
    So
    • noname
    • 25.03.10
    • 00:59

    So , when Philistines deliberately bomb , destroy or vandalize innocent Commonwealth WW1/2 War Graves in 2006 , why am I supposed to offer them support comfort or aid again ? What goes around comes around and did he forget to mention that during these rocket attacks the local native day farm laborers were barred from the luxury airconditioned bomb proof shelters and were refused permits to dig even shallow slit trenches lest a drunken colonial were to fall in and break an arm or leg during the night native resident house stoning festivals ? Charity is where again ?

  • 10. 0 0
    MIIGGY The missiles never stopped and the Hamas tunnel to Israel
    • PETER SM
    • 24.03.10
    • 19:01

    was not a peace move otherwise they would have announced they were digging it under Israel.

  • 9. 0 0
    Dear Jane
    • Olah
    • 24.03.10
    • 17:02

    Oh, you mean the "1947 Partition plan" that ALL Arab countries rejected? Yeah, you're funny indeed.

  • 8. 0 0
    What a sad Irony
    • Rob
    • 24.03.10
    • 12:59

    So if the rockets fall again Sderot can prosper? How ironic. Maybe transfer some of the funds for illegal settlements here, could create a virtuous circle...

  • 7. 0 0
    JENNIFFER Yes the no peace ever government of Palestine bombing
    • PETER SM
    • 24.03.10
    • 12:18

    is driving this municipality bankrupt. In Israel municipality and government of the country are seperate. Are the synonimous in your country?

  • 6. 0 0
    To "Dr. L. BRND", San Diego"
    • Jane
    • 24.03.10
    • 10:49

    You are so humorous, "doctor". So, I will be "humorous" too - all jews will get out from ALL palestinian territories in accordance of "1947 Partition plan", will pay ALL damages caused on Palestinians and in rest of the World and ONLY THAN they will receive some compensation for Sderot and others.

  • 5. 2 0
    The rockets had stopped between June and Oct 2008
    • Miggy
    • 24.03.10
    • 10:45

    Hamas were observing the ceasefire agreed between June and October. Israel then broke by killing 6 Hamas people in Gaza the night Barak Obama was elected (thought the world would be pre-occupied). Then it launched Cast Lead in Dec 2008 which killed mostly civilians including over 300 children. It seems Israel and their fanatical supporters prefer the bloody solution.

  • 4. 0 1
    Now UN, US, EU know price of allowing Gaza rebuild aid
    • Dr. L. Brnd
    • 24.03.10
    • 08:22

    Israel is fully justified in blocking outside shipments from donors to rebuild Gaza unless they also pay 100% of the cost of repairing all direct and indirect damage to Sderot. Consider it a "user fee" for using Israeli ports and roads to get it there, which Israel is under no legal obligation to allow. Or maybe just confiscate, say, 25-30% of each shipment as a tax so Israel can recover its costs.

  • 3. 1 0
    Am I reading this right?
    • Jennifer
    • 24.03.10
    • 07:56

    Both articles in Ha'aretz and talkback contributors have lauded Israel's economic performance and ability to go it alone, but this article implies that Sderot's financial health is dependant on Hamas. Ooops!

  • 2. 0 0
    3 MEN ARE ACCOUNTABLE FOR THE DEFICIT
    • DANNY KATS
    • 24.03.10
    • 07:47

    1)GEORGE W BUSH THAT SUBBORNED THE 2PMs 2)ARIEL SHARON PM 3)EHUD OLMERDE PM THESE THREE MADE THE DISENGAGEMENT PLAN FOR GAZA. NOW THEY HAVE TO PAY SDEROT'S DEFICIT. THEY HAVE SO MUCH MONEY 18MIL IS NOTHING FOR THESE CRAPS.

  • 1. 1 0
    Welfare
    • Sid
    • 24.03.10
    • 06:36

    This sounds like a welfare queen complaining that the free money has been cut off. Maybe the city should do the municipal equivalent of "Get a Job" or live within their means.