Former employees and contractors linked to Israel’s national public diplomacy directorate have demanded millions of shekels in unpaid dues for propaganda work carried out since October 2023, Israeli financial daily Calcalist reported.

 

The directorate, commonly referred to by the Hebrew term for propaganda- “Hasbara”- operates under the Israeli prime minister’s office and manages the country’s public diplomacy efforts.

 

According to the report, companies and contractors who provided services in the months following the Hamas-led attack on October 7, 2023, have taken legal action seeking payment for their work.

 

Two private companies that provided studio services for Israeli officials and supported activism campaigns in Europe are seeking a combined two million shekels (around $650,000).

 

Eylon Levy, a British-Israeli who served as an official government spokesperson until March 2024, said he is also owed money but is not part of the legal case. A spokesperson for Levy confirmed this to Middle East Eye.

 

Levy has continued working in public diplomacy efforts after leaving his government role.

 

Calcalist reported that dozens of independent activists and contractors were recruited after October 7 as the directorate lacked sufficient staff.

 

Some individuals involved in the campaign were not directly employed by the government but worked through private production companies that handled payments.

“Private production companies became a payment channel for those representing Israel abroad,” the report said. Contractors who worked with the directorate claimed that “the work was always messy”.

 

One production company that provided a studio used by Prime Minister Benjamin Netanyahu and Former Defence Minister Yoav Gallant for interviews is seeking more than 500,000 shekels (about $160,000) in unpaid dues.

 

Another firm, Intellect, has filed a claim for more than 1.5 million shekels (around $487,000) against the prime minister’s office, which oversees the directorate.

 

According to Calcalist, the company financed flights to The Hague for influencer activists who organised activities against pro-Palestinian demonstrations ahead of hearings at the international court there.

 

The prime minister’s office said that there were “irregularities in the contracting practices of the public diplomacy directorate” but declined to provide further details, citing ongoing legal proceedings.

 

Since October 2023, Israel’s public diplomacy campaigns have also been handled by the foreign ministry and the diaspora affairs ministry which have both dedicated huge sums of money to distribute Israeli propaganda.

 

In September last year, the government approved an additional 150 million shekels for public diplomacy work under the foreign ministry, adding to an existing allocation of 520 million shekels.

 

The additional funding was taken from the higher education budget.

 

During the same month, the foreign ministry led by Gideon Saar created a new public diplomacy directorate aimed at hiring bloggers and social media influencers.

 

In June 2024, Diaspora Affairs Minister Amichai Chikli led a campaign targeting US university campuses that sought to influence discussions on antisemitism in US law.

 

In May 2025, the diaspora affairs ministry offered settlement municipalities up to one million shekels ($325,000) to support public diplomacy activities inside Israel and abroad.