Q: In the 2018 financial report, if you open it, it says that there is a debt side to a related party, of ILS 300,000. Is that you?
A: Yes, I am a related party.
Q: For what?
A: For legal expenses incurred by the company, for capital losses and for management fees that I actually collected from the company" [Minutes of the hearing of June 9, 2025, at p. 47, lines 13-18].
- These words reinforce the lack of clarity as to the basis of the debt and for what: management fees? Loss of capital? Whose own? How does a loss of capital turn a debt of the company into Gazit? How do legal expenses incurred by the company turn its debt into Gazit's debt without presenting evidence regarding the financing of which Gazit's loan to the company? With all due respect, the defendant has not been able to explain, even in a basic way, the essence of the debt facing the company. The defendant explained that he began collecting management fees from the company in the amount of approximately ILS 15,000 per month starting in 2009. However, his testimony indicates that no explicit agreement was made to regulate the payment of management fees; that there is no congruence between the calculation of the management fees as described and the actual amount of the debt; and that no accounts were issued in accordance with the company's accountant for the purpose of reporting:
"Q: And then, actually, let's call the child by his name, you agreed, you made an agreement with, the company was only under your control. I mean, you made the agreement with the company you control, right?
A: That's it, the agreement, I didn't make a written agreement, at least not to the best of my recollection. I don't have an unequivocal answer, I don't remember.
Q: You don't remember whether you made a written agreement or not?
A: No. If it was, it would have been a long time ago.
Q: When you came to an accountant and reported it, did you issue some account or something about it?
A: Are you talking about an account about this thing? No, it is actually a registration that was made for the purpose of registration, which I actually asked the accountant to indicate that we will collect the money from the company, only when there is money in it" [ibid., at p. 47, lines 23-31 and at p. 48, lines 1-4].