State Comptroller to Netanyahu: Explain conflict of interests in communications sector
PM under fire for keeping Communications Ministry for himself, despite his strong ties to law firm heavily involved in the communications industry.
State Comptroller Yosef Shapira is seeking clarifications from Prime Minister Benjamin Netanyahu over a conflict of interests regarding the latter's decision to hold on to the post of communications minister. The conflict stems from the close links to the communications industry of both Netanyahu's lawyer and a key political aide.
After receiving the requested clarifications, Shapira will decide if there are areas within the communications sector that Netanyahu will be forbidden to deal with.
The Shimron, Molho, Persky & Co. law firm is headed by Isaac Molho, Netanyahu's erstwhile personal; emissary, and David Shimron, who represents the Netanyahu family in a range of legal matters. The home page of the law firm's website stresses that "it is one of the leading firms in the communications sector, and its expertise extends to the fields of telecommunications, media and broadcast."
Shimron Molho cites eight activities in the communications sector that it has been managing lately. Most apparently deal directly with the work of the ministry that Netanyahu currently heads.
According to the site, these activities are:
"• Representation of a cellular operator in administrative and legal proceedings pertaining to mobile interconnection fees and a number of other regulatory issues.
• Representation of a prominent television channel in legislation proceedings and ultimately in a petition to the High Court of Justice regarding payment of transfer fees to a multi-channel broadcasting platform.
• Representation of a number of television networks in legislation proceedings
• Representation of an international carrier and internet provider in a significant agreement to purchase international capacity.
• Representation of an international venture to deploy networks.
• Ongoing representation of a leading international telecommunications and Internet-service provider in Israel.
• Representation of a major international television network concerning all of its activities in Israel."
Shimron Molho also mentions that they frequently appear before the regulatory authorities and Knesset Committees on regulatory matters. In the licensing field, the site says, "our firm was instrumental in obtaining a variety of telecommunications licenses for its clients."
According to the law, the state comptroller is supposed to receive from each minister a report on possible conflict of interest. A commission in the comptroller's office deals with this issue, in the event that permissions are necessary at any point.
The attorney general is also involved in the process in certain cases. If the comptroller acts in line with precedents, he will offer three options:
1) Shimron Molho agrees to give up its clients in the communiations sector
2) Netanyahu is forbidden from dealing with a large majority of areas in which Molho's firm operates
3) Netanyahu must give up the services of his lawyers
Netanyahu can, of course, choose a fourth option - namely, giving the Communications Ministry to another MK.
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Both Molho and Shimron are distant relatives of Netanyahu. The law firm represents the prime minister in various matters, both private and public. Among others, Shimron was appointed to the Likud negotiation team after the last elections, and often appears in the media representing Sara and Benjamin Netanyahu.
By Wednesday, the Communications Ministry was unable to provide the names of the telecommunications companies represented by Shimron Molho that are in litigation with the government.
In an interview to Israeli business paper Globes a year ago, Molho pointed out that he specializes in telecommunications deals. "We deal with Pelephone, Cellcom, CNN, the Jerusalem Capital Studios and (World Jewish Congress president) Ronald Lauder's business affairs." Lauder was until recently one of the owners of Channel 10 television
.
On Wednesday, Zionist Union MK Erel Margalit sent a letter to Attorney General Yehuda Weinstein, in which he warned that "a situation that blurs the boundaries between private and political matters is dangerous for Israeli democracy, especially in light of the extreme actions of Netanyahu in the communications sector, which include the firing of the director general of the ministry, his misconduct with regard to Channel 10, his determination to deprive government ministers the right to oppose his actions in the communications sector and others."
Margalit demands an inspection of the conflict of interests agreement according to which Netanyahu acts. According to accepted procedure, the attorney general transfers the complaint to the state comptroller, who then demands clarifications.
