Housing Minister (Shas) Ariel Atias is investigating 650 building companies and contractors, who he suspects did not report the sale of 3,000 housing units. It appears the builders did not report the sale of the 3,000 units and if he can prove his case, there may be fines levied totaling NIS 75 million.

After the collapse of Cheftziba, the law was amended to better protect consumers, and one of the regulations demand that builders submit information pertaining to the sale of each unit to government regulators. The law stipulates that non-compliance compels a fine of NIS 25,000 per housing unit. 650 builders apparently hid sales regarding 3,000 units, hence the NIS 75 million in fines.

According to a Kikar report, there are 1,500 building companies in Israel registered a project initiators, so the companies involved represent 43% of all the companies in the country, the Housing Ministry reports.

Ministry officials report the amended law is intended to safeguard the money of buyers, especially after the Cheftziba catastrophe and while most of the companies reported all the sales, there are cases as pointed out here where the law was ignored and the fines will be levied as a result.

The contractor’s union echoes the ministry’s explanation, that builders are now compelled to file with the government and tax authorities, but the union does not feel the builders are trying to hide anything, explaining the process takes time and they simply have not yet completed filing. He explained the procedure now in play protects the investors’ money so there is no fear of another Cheftziba, adding the filing process pertaining to the 3,000 units in question will be completed in the coming months.

(Yechiel Spira – YWN Israel)