State Comptroller Yosef Shapira has warned of the Finance Ministry's "lack of professional readiness" for a major war or earthquake in Israel. In a partial release of his 2012 report on Wednesday, Shapira says that Israel may face damages reaching billions of shekels if a large war breaks out, endangering the welfare of many citizens.

Shapira also warns that the Finance Ministry is not prepared to handle damages that may result from a strong earthquake. The costs of reparations and financial aid in the case of such a national disaster may plunge Israel into an economic crisis, he wrote.

In response, the Finance Ministry said in a statement: "Over the past year, a special interministerial team assessed Israel's security and financial preparedness for an earthquake. The team's analysis and conclusions were presented to the government and are expected to receive the government's approval. The report by the team states that Israel has a variety of means at its disposal to deal with financial events of this kind."

Shapira was appointed state comptroller on May 15, replacing Micha Lindenstrauss after a dramatic struggle in the Knesset plenum, and will hold the post for seven years.