Buying His Way into Politics

Arcadi Gaydamak has stacked up a resume of noteworthy social, economic and philanthropic activities in Israel.
The Russian-born billionaire has pushed himself into the social scene, throwing lavish parties for the Israeli elite. He has earned a reputation for extravagant generosity, filling in where the government fell short during last summer’s Lebanon War to set up housing and shelters in southern Israel and sponsoring trips for children to get them away from incoming rockets in southern Israel. He has also endeared himself to sports fans, bankrolling a Jerusalem basketball team and buying a Jerusalem soccer club.
 
Now Gaydamak, who doesn’t speak Hebrew in public and has no political experience, wants to be mayor of the city considered the capital of the Jewish people. With the announcement that he’s running for Jerusalem mayor, Israelis are questioning whether he was buying his way into their favor all along or whether his concern for the city is genuine.
 
Two months earlier, Gaydamak announced the formation of a new movement called Social Justice, which he said could turn into a political party at any time and would apparently align itself with the Likud led by former Prime Minister Benjamin Netanyahu. He said at the time that he did not want to run for a Knesset seat himself.
 
Shady Business Past
 
Gaydamak was born in Ukraine in 1952, grew up in Russia and immigrated to Israel when he was 20. He served briefly in the Israeli army, worked on a kibbutz and then left for France, where he lived and made his fortune. In December 2000 he returned to Israel after being accused of illegal arms trading with Angola, tax evasion and money laundering. Gaydamak is now wanted in France, but Israel has refused to extradite him.
 
In Israel he has also been investigated for money laundering but has denied any wrongdoing. Gaydamak’s philanthropic activity in Israel, low key until then, became high profile after these accusations surfaced. During the Second Lebanon War, he constructed a tent village on a Nitzanim beach in southern Israel hosting thousands of families who fled the North. In November 2006, he funded a week-long vacation in Eilat for hundreds of residents from the southern town of Sderot who were enduring rocket attacks from Gaza.
 
Gaydamak decided to make a bid to oust current Mayor Uri Lupoliansky after City Hall banned a march by World War II veterans, which the billionaire has financed for the past three years. He said Lupoliansky’s “spirit was wrong” for the city.
 
Good Chance of Winning
 
With the potential support base of Beitar Jerusalem soccer fans, the ultra-Orthodox community whom he has tried to woo, and a reputation for funding out of his own pockets what should be government initiatives (à la the erstwhile American presidential candidate Ross Perot], Gaydamak stands a good chance at the polls.
 
“I have no doubt that the entire city will vote for me,” he confidently announced. “There’s not one person who is not familiar today with Gaydamak and his ability.” He added that he wants to turn Jerusalem into “a symbol of peace and Judaism.”
 
“The city will be much better, and not only from the economic point of view,” he said. “It will also become a symbol of the Jewish spirit. It’s my duty to defend the Jewish tradition.”
 
To Run or Not to Run
 
But Israeli politics is fickle. The elections are not for a year, plus sources close to Gaydamak say the tycoon may not run for mayor after all. He may choose instead to back another candidate who will do his bidding in office or try to win a majority of city council seats. Some analysts say that Gaydamak’s announcement to run for mayor was simply a slap at Lupoliansky for cancelling one of his pet projects.
 
Another name that has been thrown into the ring as a potential mayoral candidate is former police chief Mickey Levy. Gaydamak could potentially back Levy, which might be useful as he is still under investigation for money laundering.