How the Israeli press beat the censor to bring "Prisoner X" to their public

Gagging orders, media censorship and the public interest.

It seems worthy of a John le Carré novel: a prisoner whose name was unknown even to his guards was found hanging in a maximum security cell-within-a-cell originally built for the assassin of a former prime minister, his identity and death then vanished by the security services. Israeli media had tried to report the detainment of this "prisoner X" back in 2010, and his death a few months later, only for the reports to be immediately removed by Israel’s military censor. To the Israeli public, the case was dead.

What happened next was to reignite overdue debate around press censorship in Israel as much as apparent misconduct by the secret, prison and legal services.

This week the Israeli government was caught off guard when Australian network ABC News released findings of their months long investigation, revealing Prisoner X had been a Jewish Australian national named Ben Zygier who had migrated to Israel in his early twenties, ten years prior to his death, opting for army service, marrying an Israeli, starting a family here, and becoming a Mossad agent who later breached the law of his former homeland by using his Australian passport to fake several aliases.

Despite the ABC News report being very much out of the bag for the whole world on Tuesday, within Israel itself the next 48 hours saw an absurdly ill-timed circus of gag-within-gag (i.e. super-injunction) court orders ceremoniously reigned down upon newsrooms from "above", more disappearing articles, and frustrated Israeli journalists chafing at the bit, outraged at how their government’s attempts to shut up a horse long bolted from the stable was making Israel look simply ridiculous in face its own citizens let alone the world.

Jerusalem Post journalist David Brinn later reported the moment he tried highlighting the obvious to a military censor officer calling through: “You realise that the story is on the ABC News website and everyone is able to read about it?” At least one Israel-based foreign press reporter informed – via Twitter – that the military censor was also calling them. Reuters had effortlessly bypassed the censor, reporting ABC’s investigation with a London (as opposed to, say, a Jerusalem) dateline. While details of Zygier’s identity, including photos, were being disseminated on Twitter and Facebook by journalists inside and outside Israel faster than any censor could hit "delete".

It was when Haaretz newspaper cunningly side-stepped the gag order without breaching it - by reporting simply an "editors committee" meeting had been summoned at the Prime Minister’s office where media chiefs had been asked to “withhold publication of information pertaining to an incident that is very embarrassing to a certain government agency” - that the rest of the media got hooked. An Israeli editor later told ABC News reporter Trevor Bormann that several of them had "turned" on Mossad chief Tamir Pardo apparently also present at this meeting, complaining gag orders have too long disrupted the health of the press and democracy and that reform is needed to take the digital age into account, while another editor accused Pardo of “treating the Israeli public like fools”.

By Tuesday evening three Israeli politicians had seized the opportunity to use their parliamentary immunity to question the justice minister about "Prisoner X" at a Knesset assembly, finally throwing Israeli media the bone they needed to report on the case from within Israel.

By Wednesday morning the government had little choice but to partially lift the gag order. But while the Israeli press could now report on the ABC News investigation, they were still banned from any original reporting of their own. The cockeyed nature of the censor policy was particularly highlighted when Haaretz had to publish it’s morning paper with a limited report on Prisoner X while the International Herald Tribune, a partner supplement sold together with the paper in Israel, contained a full report. A frustrated Haaretz Editor, Aluf Benn, who had refused to attend the editors committee meeting, then let rip in his op-ed, arguing Israel’s government censorship in modern times has become a “pathetic attempt to turn back the clock" to a time before WikiLeaks, social media and bloggers.

As Israeli journalists continued to rapidly affirm the case through foreign and social media, by the evening the state buckled, releasing an official statement acknowledging an Australian national had been secretly detained under a false identity by court order, citing security reasons (with no mention of the Mossad), and that the prisoner had full access to legal aid but had subsequently committed suicide.

Journalistic investigation has since snowballed, with recent reports suggesting Zygier might have turned into a double agent on the verge of moving back to Australia and about to blow the whistle on Israel’s misuse of foreign passports, the 2010 Mossad-led assassination of a Hamas arms dealer in Dubai being a known case in point. Another crucial development is Israeli lawyer Avigdor Feldman saying he met Zygier the day before he died to discuss a possible plea-bargain deal, but that Zygier had “wanted to clear his name” by going to trial instead, and that he had seemed “very rational and focused. He did not seem suicidal.”

Whatever the story evolves as, suspected negligence around the fact that an Israeli citizen who was seeking fair trial died unnamed while in the custody of the democratic state he served, is undeniably for the Israeli press - not "foreign sources" - to initiate investigation of and for the Israeli public to judge. Concerning state security, how far the Israeli press should continue down the rabbit hole is again also rightfully up for their public to debate. The most severe scenario, if Zygier was a Mossad agent, is that the mere revelation of his identity has already risked the lives of other agents – Israeli and perhaps even those working for other governments. Though probably - picking up on the use of the word "embarrassing", as opposed to say "threatening" or "deadly", by the PM’s office in their meeting to the media chiefs - the Israeli government feared immediate straining of relations between Israel and its close ally Australia, which will likely heal.

Either way, the Israeli press will do good to raise serious questions over not only Israel’s justice system but also the conduct of the security services towards patriotic Diaspora-born Jews they recruit. The fact that Zygier was Australian is Australia’s business, with ABC News doing their job right. But the fact that he was also Israeli - a Jew who first loved, moved to and served Israel before something went seriously wrong – makes his case very much of Israeli public interest, within a nation greatly and proudly made up of immigrants from all over.

Australian newspapers lead their front pages in Australia with the story of Ben Zygier. Photograph: Getty Images

Camilla Schick is a  journalist based between London and Tel Aviv, writing on culture, religion and international politics.

Ralph Orlowski / Getty
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Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

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