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Stella Korin-Lieber, Globes: No-one is looking after our assets

Published on May 21 2013 // Opinion

20 May 13 18:55–1. The Government Companies Authority has had its day, and the time has come to close it. To break it up. There have been no privatizations for ages, and if such plans do materialize, such as the idea that appears in the economic plan to float 20% of Rafael Advanced Defense Systems Ltd. and Israel Aerospace Industries, the move will be led by the Minister/Ministry of Finance and the minister/ministry responsible for the company. There is no need for the go-betweens of the Authority.

2. There is no supervision of the state-owned companies. Perhaps there never was effective supervision. If there were, if the owners’ representative, the Government Companies Authority, had its finger on the pulse, then Israel Electric Corporation would not have reached virtually bankruptcy, a debt of 75 billion, while, at the beginning of 2012, the Authority approved handsome salary rises for the chairman and the CEO and those around them, and they themselves allow the thousands of the monopoly’s workers this and that benefit, some well-known, some less well-known. If there were supervision, then a company that makes a NIS 680 million loss in 2012 would not also award salary rises averaging 18.2% to its employees. If there were supervision, the seaports, with the highest wages in the public sector, would not have become a symbol of cynical, bullying exploitation of state assets. This is not new; it’s a tradition that heads of the Government Companies Authority have never done anything to stop. On the contrary, they have even abetted it.

3. Had the Authority carried out its task faithfully, the salaries of the 58,850 government company workers would not have continued to grow while the private sector licks the wounds of the global and local economic crisis and cuts its employees’ salaries. In 2010, the salary cost of the 58,850 people employed in the state-owned companies was NIS 16.2 billion. In 2011, it was 16.9 billion, and in 2012, NIS 18.5 billion, representing a rise of 10%. So who needs this Authority? Just so that the surrender to the strong workers committees should have its own organization?…Read More>>

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