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Sebastian Scheiner
Yogev. Accused of corruption.
Sebastian Scheiner

Police investigating Government Companies Authority director for alleged corruption

Alleged problematic actions by GCA director Uri Yogev have moved from the Attorney General's Office and the State Comptroller's Office's hands into those of the Israel Police. He is suspected of attempting to use his influence as a senior government employee to facilitate his private business dealings.

The Israel Police's special fraud investigation unit is these days in the midst of examining complaints received against Director of the Government Companies Authority Uri Yogev (the Government Companies Authority, or GCA, is a government body within the Ministry of Finance whose purpose is to manage the Israeli government's activities in relation to companies in which it holds an ownership stake. These include large and important companies such as the Israel Electric Corporation and Israel Military Industries. -ed).

 

 

The investigation has not been made public by the authorities, but police officials tell newspaper Yedioth Ahronoth (Ynet's official newspaper partner. -ed) that an internal discussion within the police force will be held after the Sukkot holiday concludes, in which they will make a decision on whether to officially state that these proceedings are happenning.

 

GCA Director Uri Yogev. Denies all accusations of wrongdoing. (Photo: Kobi Gideon/GPO)
GCA Director Uri Yogev. Denies all accusations of wrongdoing. (Photo: Kobi Gideon/GPO)

On Friday Yadioth Ahronoth revealed that Mekorot (the Israeli national water services company) CEO Shimon Ben Hamo had presented the state comptroller and attorney general with a very severe report against Yogev. In addition, he told personnel at the SC and AG offices that Yogev had threatened him, and that, "Yogev asked for assistance from Mekorot in selling the Whitewater company, which he owned, and which had fallen into debt."

 

The SC recommended that the AG open an investigation into the matter a few months ago. The Ministry of Justice denied on Saturday that there was any dragging of feet on the matter, saying, "The comptroller's inquiries were sent to the State Attorney's Office and are being examined by the police."

 

When he started his role as GCA director, Yogev specifically signed an agreement according to which he would not interfere with Mekorot, due to the fact that he owned Whitewater Holdings.

 

However, Ben Hamo claims Yogev attempted to convince Mekorot officials to recommend the purchase of Whitewater to an American firm. In the end, the sale fell through.

 

Yogev also allegedly spoke with Ben Hamo about Tzinorot, a pipe-making company on whose board of directors the former had previously served. This supposedly occurred during Yogev's professional cool-down period (a period separating one's leaving of one position and filling another, mandated so that one will not be able to move quickly from one influential job to the next and use this position-hopping to peddle influence. -ed).

 

The Israel Police will convene and decide whether to make the investigation public after Sukkot. (Photo: Avi Moalem) (Photo: Avi Moalem)
The Israel Police will convene and decide whether to make the investigation public after Sukkot. (Photo: Avi Moalem)

 

According to Mekorot officials, "Yogev asked us to sign a long-term contract with the company, which would guarantee it millions of shekels, a moment before they moved their factories to the south of Israel." They claimed that Yogev threatened to publish smears about them if they did not meet his demands.

 

According to the report, things reached a boiling point when Yogev asked Ben Hamo to resign his position so that another CEO could be appointed. "He threatened that if I didn't, he's disseminate the critical reports about the company," Ben Hamo told the State Comptroller's Office.

 

Uri Yogev's representatives say that he intends to file a defamation lawsuit against Ben Hamo, calling his claims, "A series of lies and insults." They say Yogev denies all accusations of wrongdoing.

 

 

 


פרסום ראשון: 10.17.16, 14:29
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