Yadlin affair

The Yadlin Affair (Hebrew: פרשת ידלין‎‎, Parashat Yadlin) refers to a political corruption scandal that broke in Israel in 1976, involving senior members of the Labor Party (then the major faction in the Alignment). It is often seen as one of the reasons for the "revolution" of the 1977 elections.

In 1976, Haolam Hazeh began publishing investigations regarding illegitimate financial transactions concerning senior members of the labor movement and the party funds. The names mentioned included Asher Yadlin, who was about to be appointed Governor of the Bank of Israel. Yadlin was known to be a gambling buff (favoring the Las Vegas roulette table) with an eye for pretty women, He was also a major fund raiser for the Labor Party; since 1973, he has headed Israel's huge Kupat Holim health-insurance program. The reports also mentioned Avraham Ofer, Yitzhak Rabin's Minister of Housing. The investigations suggested bribery, and the reporter Yigal Laviv pressed charges.

The cabinet decided, on September 5, to appoint Yadlin, former head of the Histadrut's economic enterprises, governor of the Bank of Israel to succeed Moshe Sanbar on November 1. On the day after the cabinet decision, Police Minister Shlomo Hillel and Attorney-General Aharon Barak were informed that the police had been inquiring into allegations against Yadlin of improper conduct in the management of Kupat Holim. Yadlin declared that the allegations were without basis and that he would welcome an investigation.

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