State Comptroller Yosef Shapira on Wednesday, 1 Cheshvan 5773 released the first portion of his 2012 annual report, devoting a significant portion to Israel Electric Company (IEC). The report cites serious flaws in the upper management’s decision making process and the utility’s failure to properly plan for the nation’s future electric needs. The comptroller spoke of the lack of long term decisions to ensure continued operations in the future.

Among the criticisms cited in the report is the fact that from 2007-2009, unnecessary price increases were approve, increases that cost the consumer five billion NIS. These funds should have been used to build new turbines to produce additional electricity but this did not occur. The funds should have been used properly towards lowering electric rates from 2010-2014 but the utility’s dire financial status has compelled it to spread out addressing its debt until 2025.

The report speaks of “billions of NIS in benefits” given to employees, perks lacking the required treasury approval all while the utility company sinks deeper into the red. Shapira was unforgiving in his criticism of the utility, the mismanagement of funds and the flawed decision-making process and the lack of supervision from its board of directors. The comptroller places the finger of blame on the Ministry of Energy & Water, for its failure to properly monitor the utility monopoly.

(YWN – Israel Desk, Jerusalem)