Frenkel accused of claiming funds not due him

In his annual report State Comptroller Eliezer Goldberg said Frenkel had received 100,000 shekels ($20,000) to which he was not entitled for unused sick days.

A spokeswoman for Frenkel, who is now president of Merrill Lynch International, said he had acted according to regulations and all his activities were carried out in good faith.

But Shlomit Lavi, spokeswoman for the state comptroller, said the central bank chief was subject to the same rules as ministers regarding sick days and he was not supposed to receive money for sick days not used.

In addition, Frenkel received $20,000 for daily allowances for his trips abroad on Bank of Israel business "but the bank did not cross-check the costs that appeared on his official credit card." He also received 30,000 shekels for unused days off, Lavi said.

The payout was approved by a senior manager at the bank who was subordinate to Frenkel, she added.

Frenkel, who was credited for helping Israel to achieve price stability after taking over at the helm of the central bank during a period of double-digit inflation, claimed the money when he left the central bank in 2000, according to the report.

Frenkel asks for pay complaints probe

Jacob Frenkel has asked the attorney-general's office to investigate the state comptroller's finding that he received hundreds of thousands of shekels more than he should have when central bank governor, Ha'aretz reported on Wednesday.

Frenkel has denied the allegations.