Title: Government Companies in Israel Face Paralysis Amidst Ongoing Conflict
Subtitle: Dire Consequences as Directors Remain Inaccessible and Key Actions Hindered
Date: [Insert Date]
In a deepening conflict between the Director of the Companies Authority, Michal Rosenbaum, and the Director General of the Prime Minister’s Office, Yossi Sheli, the Israeli government companies are now facing a state of paralysis. With no resolution in sight, critical actions such as appointing directors and withdrawing dividends have been significantly hindered, leaving companies unable to function effectively.
The conflict, which has been ongoing for several months, recently escalated when Dodi Amsalem, the minister in charge of Rosenbaum, called for her immediate ousting. The rift between Rosenbaum and Amsalem has resulted in a systemic breakdown within the government companies, rendering them unable to carry out essential tasks.
Currently, there is an alarming shortage of directors in the government companies. Out of approximately 700 positions, 400 directors are missing, leaving the boards unable to act. This crisis has crippled decision-making processes and obstructed crucial appointments. For example, the electric company has been without a chairman of the board for two years, with only 7 out of 21 possible directors present. The defense company Elta is also experiencing a significant shortage, with only 5 out of 13 directors in place.
Furthermore, the inability to withdraw dividends from the government companies has created a financial challenge. At present, an estimated 2 billion shekels are “stuck,” unable to be used for budgetary needs or to address the cost of living.
The Prime Minister’s office, which acknowledged the meeting between Sheli, Rosenbaum, and Amsalem, focused solely on the intention to resolve economic disputes. Meanwhile, Amsalem’s associates confirm that their main message was to encourage Rosenbaum to work in harmony with the minister. They emphasized that she needs to recognize his authority and cease acting as if he were her subordinate.
However, Rosenbaum’s viewpoint differs. According to her, the Prime Minister instructed the CEO of his office to find a solution and calm the tensions. Interestingly, Yossi Shelley, the Director General of the Prime Minister’s Office, expressed surprise at a letter Amsalem sent after their meeting, indicating a significant escalation in the conflict.
This intensifying conflict is rooted in professional disputes concerning appointments, removals, and board of directors’ decisions. Underlying these disputes are fundamental differences of opinion regarding the authority of elected officials versus professionals.
The law allows for the removal of the Director of the Companies Authority if there is a “clear incompatibility for the position” or an “acute and ongoing crisis of confidence.” Amsalem argues that the situation has reached that point. Nevertheless, until a resolution is found, the government companies’ ability to function properly remains uncertain.
The severity of this conflict raises concerns about the government’s ability to maintain stability and provide effective governance. With critical positions remaining vacant and key actions paralyzed, the public service is on the brink of collapse. Urgent intervention is required to restore confidence and ensure the smooth operation of vital institutions that drive the Israeli economy.