The Government Companies Authority is demanding explanations from Mekorot National Water Company over its contract with Natan Eshel, an associate of Prime Minister Benjamin Netanyahu and his wife, Sara. In a response to a query by "Globes", the Ministry of Finance said that the contract with Eshel required a tender, because Mekorot is a government company.
However, Mekorot operates overseas through subsidiary Mekorot Development & Enterprise Ltd., which does not hold tenders for choosing agents to represent it, and does not disclose their names or the terms of their contracts. Mekorot says that Eshel is not a salaried employee, and that its relations with agents are in accordance with normal market procedures - including defense companies.
On Sunday, "Globes" revealed that Eshel was set to make millions of shekels for mediating a Mekorot contract in Mexico. He was the strongman at the Prime Minister's Bureau, where he served as chief of staff, before his resignation on March 1, 2012, after being convicted by the civil service disciplinary tribunal for conduct unbecoming against one of the prime minister's women advisors.
Sources inform ''Globes'' that Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) is conducting a review into hiring Eshel to promote sales of its products. IAI has made no decision on the matter. IAI told "Globes" in response, "The company does not comment about its marketing activities."
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2014
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