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The Ministry of Finance cited "salary irregularities amounting to millions of shekels" as the reason for the order. It added, "For months, Tel Aviv University has not cooperated or fulfilled the orders of the Director of Wages at the Ministry of Finance."

… The Ministry of Finance said, "In addition, the university's management was asked to deal with the matter of excessive salaries at the institution, but has not done so. It should be pointed out that, over the past year, there were many attempts at dialogue between the Director of Wages and the university management, in which the Council of Higher Education was also a party. Since the university, through its actions, is not fulfilling the provisions of the Budget Law, Steinitz decided on this extraordinary measure to delay the state budget to the institution."

http://www.globes.co.il/serveen/globes/docview.asp?did=1000599903&fid=1725

Steinitz halts Tel Aviv University funding
Finance Ministry: The university has avoided fulfilling orders to correct excessive salaries.

Globes' correspondent
9 November 2010

Minister of Finance Yuval Steinitz today ordered Accountant General Shuki Oren to immediately stop budget transfers to Tel Aviv University. The order was also sent to the Council of Higher Education in Israel's planning and budget committee, which handles the government's budgets to the university. Tel Aviv University's budget in the 2009-10 academic year was NIS 965 million.

Last year, Director of Wages Ilan Levin ordered Tel Aviv University to void several arrangement and agreements that it had signed with employees. Levin also told the university how to correct the distortions, but the Ministry of Finance claims that it has avoided making the required changes.

The Ministry of Finance said, "In addition, the university's management was asked to deal with the matter of excessive salaries at the institution, but has not done so. It should be pointed out that, over the past year, there were many attempts at dialogue between the Director of Wages and the university management, in which the Council of Higher Education was also a party. Since the university, through its actions, is not fulfilling the provisions of the Budget Law, Steinitz decided on this extraordinary measure to delay the state budget to the institution."