Board of Directors eIAI He will discuss at one of his upcoming meetings the implementation of the recommendations of the State Comptroller’s report from 4 years ago regarding the relationship between the company’s management and the workers’ organization. The hearing was scheduled after the publication of the workers’ organization’s financing event held in the compound provided to the workers by the management, without rent.
Several Likud Knesset members also participated in the financing event in question, as did Minister Ayelet Shaked, who was received very warmly. Also present was Arnon Bar-David, chairman of the Histadrut, who is running for office in the coming elections.
The director of the Companies Authority, Adv. Michal Rosenbaum, wrote a letter to the chairman of IAI, Amir Peretz, demanding explanations about the financing of the event and its nature, and about the involvement of the management or the board of directors. Peretz turned to CEO Boaz Levy and addressed him, noting that “if additional measures, as severe as necessary, are needed, they will take action.”
Levy: “No political signs were seen in the event tent”
Levy recently responded to Peretz in a letter that reached us stating that the management was not involved in organizing or financing the event, nor in inviting guests. The director general clarifies that this type of welfare event for employees does not require the approval of the management, and adds “I will emphasize that no political signs were seen in the event tent.” Levy explained the presence of Knesset members as follows: .
This response is consistent with the committee’s response that the event had no political intent and that many of its public figures in contact with the aerospace industry were invited to it. Among other things, retired IDF officers were invited, as well as politicians from several parties, including Labor Chairman Minister Merav Michaeli, Minister Tamar Zandberg of Meretz and other politicians. However, it is impossible to ignore the fact that the increased presence of Knesset members from the Likud gave the impression that this was a political event in which members of the main opposition party were a kind of guest of honor.
Levy notes that in the audit of the Companies Authority during the election period, the conclusions were that the company meets the restrictions of preventing political activity in its complexes. He writes that “such a refresh of the rules will be carried out in front of the secretary of the workers ‘organization and in front of Sha’al (the economic body of the workers’ organization), in order to ensure their full existence in the future, including in the Sha’al compound.” To be held in a compound that “will not have a political character.”
In the letter, Levy also refers to Rosenbaum’s request regarding the auditor’s report from 2018 and writes: The updated summary on this issue is expected to be discussed by the board at one of its forthcoming meetings. “
The aerospace industry must also explain the issue of the aircraft it purchased for the flights of the company’s executives
Rosenbaum received the CEO’s reference from the CEO, and in a reply letter expressed satisfaction with the progress of his handling of inquiries and the issue of the auditor’s report in particular and asked for an update after correcting the deficiencies. She reiterated the sweeping directive for non-existence of political activity directly or indirectly in all areas of society.
The aerospace industry owes Rosenbaum another explanation, in the issue of the plane it purchased for the flights of the company’s executives. According to the publications, the company acquired full ownership of an executive jet from Gulfstream, which owned half of it, and the aircraft was used by the executives for various flights, including to Morocco, the Gulf and other destinations. Management explained that due to the Corona epidemic and the cancellation of regular commercial flights the aircraft was intended to promote the company’s business worldwide. Rosenbaum asked for a more detailed explanation two weeks ago, and Peretz promised that a full answer would be received soon.
IAI has taken another step towards the IPO
Last week, IAI released its first-quarter reports that showed a real increase in profits and revenue, a continuation of the company’s very successful three years. Rosenbaum’s letter is another incentive for management to correct the shortcomings leading up to the IPO it is promoting, so that it can present a stable and background-free company that will lead to high demand and a handsome value per share.
This morning, another advanced step was taken for the IPO: an amendment to regulations approving the issuance of minority shares in government companies was approved, an amendment that removed a legislative barrier to the IPO. Following the approval of the Minister of Finance, Avigdor Lieberman, and the Minister of Defense, Bnei Gantz, and the joint work of the Government Companies Authority, the Ministry of Justice and the Securities Authority together with IAI, the Constitution Committee approved an amendment to the Companies Regulations. , So that it will be possible to promote the issuance of minority shares in IAI and other companies.
The purpose of the approved amendment is to lay the groundwork for capital issues of companies over which the state has control and ensures that there are appropriate control mechanisms for conducting transactions with the state, in such a way as to balance the need for disclosing information to public shareholders and the state’s interests.
The director of the Government Companies Authority, Michal Rosenbaum, defined this as a significant step that allows the IAI to advance “while strictly safeguarding the security interests of the state as well as maintaining the corporate governance and protecting the required investor public in the company reports.
This amendment comes as part of the Government Companies Authority’s policy to promote issues and privatization in government companies in order to streamline public service, promote transparency in them, and improve business results, in order to produce high returns and value for the citizens of the State of Israel. “
Now everyone is waiting for approval of the confidentiality order from the Attorney General’s Office, an order that will allow confidentiality of the company’s confidential / security information even after the IPO.
The High Court rejected the petition against the appointment of Amir Peretz as chairman of the board
Meanwhile, the High Court rejected the petition of the Movement for Quality of Government against the appointment of Amir Peretz as chairman of the board of directors of IAI. The petition relied on the position of the Civil Service Appointments Committee which sought to reject the appointment. However, the judges ruled that “a person whose professional past includes standing at the head of the Ministry of Defense, membership in the Israeli government’s political-security cabinet, managing the Histadrut, and more, can certainly not be disqualified as a candidate to serve as a director in a government company like IAI.” And if that is the case, it is clear that the appointment of such a person to the position of director of IAI cannot be considered extremely unreasonable to the point of exceeding the bounds of reasonableness. “
Justice Solberg added here a position that is also very relevant to other rulings in matters concerning government decisions: “We must be careful and guard against using the ground of reasonableness in such a DA, even if we, the judges, sincerely believe that a ‘better’ decision could have been made. In the shoes of the government, and to convert its discretion into our own discretion. ” That is: reducing the ground of reasonableness in disqualifying government decisions.
Judge Dafna Barak Erez, who was the most skeptical of the three judges, wrote that he was a candidate who held very senior positions, both inside and outside the government, but also that Peretz “until recently served as a minister in the previous exchange government, as part of the private ministerial bloc.” He is the appointing minister in our case “(Ganz). But she also joined the opinion of her friends and ruled on the rejection of the petition while criticizing that the process did not comparatively examine other candidates.