Finance Ministry to ask State Comptroller to examine Zim sale

The Ministry of Finance is confident that an inquiry will show that the sale price, which has been severely criticized, is justified.

Sources inform “Globes” that the Ministry of Finance has decided to give State Comptroller and Public Complaints Commissioner Eliezer Goldberg all the available information concerning the sale of the state holding in Zim Israel Navigation to Israel Corp. (TASE:ILCO).

The Ministry of Finance will ask Goldberg to audit the entire Zim privatization process. The ministry is confident that an inquiry will show that the sale price, which has been severely criticized as especially low by various economic and political parties, is justified.

The Ministry of Finance decided to deliver the complete version of the both of the valuations that it commissioned: one by Avi Toledano CPA, and the other by economist Avi Chefetz. Documents to be transferred include those pertaining to the procedures followed with the Israel Corporation before the sale; information about the actions of the committee for selling the state’s shares, headed by Government Companies Authority director Eyal Gabbai; and information about the negotiations themselves last week with the Israel Corp. President and CEO Yossi Rosen and Adv. Ram Caspi represented the Israel Corp. in the negotiations.

Goldberg has already audited Zim privatization procedures and actions by Zim and the Israel Corporation. In a report in early 2002, Goldberg wrote, “Actions to privatize Zim have been taking place for over a decade. The state derives no real benefit from the ownership of Zim. Its management status in Zim is inferior to that of the Israel Corp. Like the other shareholders, the state has received no dividends on its investment for years.”

Published by Globes [online] - www.globes.co.il - on January 19, 2004

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