State Comptroller Matanyahu Englman published a comprehensive report this afternoon (Tuesday) revealing a series of serious failures in the areas of incarceration, cybersecurity, and government management during the war.
At the center of the report is the prison crisis created following the sharp increase in the number of terrorists arrested since the outbreak of the war. According to the comptroller’s data, the number of security prisoners in Israel Prison Service facilities rose by about 92%, from approximately 5,200 before the war to around 10,000 prisoners in January 2025.
The comptroller determined that the Israel Defense Forces and the Israel Prison Service did not prepare in advance for a scenario of a broad war and the need to hold large numbers of terrorists for an extended period. According to him, the lack of an early assessment by the IDF and the failure to prepare suitable prison infrastructure led to a severe crisis in the prison system.
One of the most prominent consequences of the crisis was the release of the director of Al-Shifa Hospital and 18 additional detainees while Israeli hostages were still being held in the Gaza Strip.
The comptroller sharply criticized the fact that the move was not brought in real time to the attention or approval of Prime Minister Benjamin Netanyahu.
The report further shows that as of February 2025, there was a shortage of 3,502 prison spaces - a situation that harmed the ability of the Shin Bet to carry out arrests and interrogations in Judea and Samaria, created heavy burdens on Israel Prison Service staff, and increased security risks inside prison facilities.
The comptroller also noted that as of February 2025, indictments had still not been filed against the terrorists who participated in the October 7 massacre. According to him, this is an issue of the highest public, legal, and moral importance.
Cyber Threats
In the digital and cyber fields, the report reveals that for an entire decade, the Security Cabinet of Israel did not hold even one dedicated discussion on cybersecurity (except for a single meeting in 2018), and cybersecurity legislation was not advanced at all.
This occurred while cyberattacks against the Israeli economy intensified during the current war, with increased boldness and creativity that included data theft and deletion. The economic damage caused by these attacks is estimated at 12 billion shekels per year.
The comptroller also points to an “innovation paradox" in the field of artificial intelligence: despite Israel’s status as a global high-tech powerhouse, there is a noticeable gap within the public sector.
A special questionnaire distributed to public bodies found that 58% of them had no dedicated budget allocated for advancing artificial intelligence projects, and 86% of the bodies had no autonomous AI-based decision-making systems at all - creating a critical barrier to improving services for citizens.
The audit also found a fundamental failure in the overall management of cybersecurity protection at the President's Residence, in a manner that does not match the risks facing an institution of such high national importance.
“A breach of the unprotected information systems of the President’s Residence could lead to exposure and severe harm to citizens’ privacy and reputations, since the systems contain extremely sensitive and personal information about nearly 100,000 citizens who submitted pardon requests," the comptroller stated.
The Israel National Cyber Directorate responded: “The National Cyber Defense Law, which was approved last night in its first reading, will improve the level of cyber protection for essential organizations and digital suppliers and strengthen government ministries that serve as regulators in leading protection efforts across various sectors, under the professional guidance of the National Cyber Directorate."
"It is important to note that the intensive defensive activity of the National Cyber Directorate during the war, together with its mission partners, prevented the enemy from achieving significant successes. They did not succeed in harming national operational continuity or human life, despite repeated attempts. The National Cyber Directorate has studied the report’s findings in depth, as it does with every professional audit, has already addressed some of the issues raised, and will continue working to implement the lessons."