Israel Electric Company may not have a board this September

The IEC must have seven board members, it will fall to six at the beginning of September, and a dispute between the Finance and Prime Ministers is stalling it.

 Foreign Minister Yair Lapid and Finance Minister Avigdor Liberman at the cabinet meeting, November 7, 2021.  (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
Foreign Minister Yair Lapid and Finance Minister Avigdor Liberman at the cabinet meeting, November 7, 2021.
(photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)

A disagreement between Prime Minister Yair Lapid and Finance Minister Avigdor Liberman is preventing the completion of the board of the Israel Electric Corporation (IEC), Maariv has learned. 

The board requires at least seven members, but if that isn't secured by September 1, it will leave the IEC without a binding quorum. 

This dispute reflects the depth of tension between the two. It is now focused on the continuation of the term of Avraham Menela, chairman of the Kadisha company, who is also on the IEC board. 

What's the story with Avraham Menela? 

 Israli Minister of Energy Karin Elharar speaks at  a Yesh Atid party conference marking 100 days for the formation of the Israeli government, in Shefayim, September 22, 2021. (credit: GILI YAARI/FLASH90) Israli Minister of Energy Karin Elharar speaks at a Yesh Atid party conference marking 100 days for the formation of the Israeli government, in Shefayim, September 22, 2021. (credit: GILI YAARI/FLASH90)

Menela's term ends at the beginning of September. Lieberman has wanted to extend his term, but the Energy Minister Karine Elharrar (Yesh Atid) opposes the extension and has refused to sign off on his continued term since June. 

Why isn't Elharrar signing? 

Elharrar’s has also refused to approve the appointment of Meir Spiegler to the position of CEO of the IEC. The non-signature stands even though the IEC officially chose Spiegler for the position

Spiegler has since continued to serve as CEO of the National Insurance Institute. Meanwhile, Liberman has refused to approve any appointments proposed by Elharrer.

These are appointments of employee representatives to the board of directors. If the workers' representatives and Abraham Menela aren’t approved, the IEC board will be reduced to six, which would make it an illegal quorum that will prevent the board of directors from meeting and discussing essential matters concerning the company’s future.

In the meantime, an agreement was reached to appoint Ilan Biran to the position of Chairman of the board, a position he will hold for three years. 

However, his entry into office is delayed and will probably only happen in mid-September. By then, it will be more likely to know whether Menela's term as director has been extended or not.

Biran denied to Maariv that the delay in his appointment was in any way related to Menela's tenure, adding that he has standing commitments to Visa Cal as well as to an international company that will hold a convention in Israel, so he wouldn't be able to take to office by mid-September anyway.