An inquiry by "Globes" raises questions about the current ability of Metropolitan Mass Transit System Ltd. (NTA) to implement the Tel Aviv light rail project instead of ex-franchisee Metro Transport Solutions (MTS). Even as the Ministry of Finance is preparing to nationalize the NIS 11 billion project, NTA, which is a government company, has no permanent CEO or engineering consultant.
NTA general manager Yishay Dotan unexpected resigned two months ago, after seven years in the job, due to a harsh internal audit. No search committee to find a replacement has yet been appointed, and NTA CFO Galit Assaf-Shinhar is serving as acting general manager.
NTA faces an even worse problem due to the termination of its longstanding contract with Mesilot Ltd., its consultancy firm. NTA chairman Michael Ratzon, a former Likud MK, made the decision not to extend Mesilot's contract, apparently in connection with Dotan's resignation.
There had been extensive criticism over the years about NTA's relationship with Mesilot, including the latter's huge budgets with no supervision or proper auditing. A source at NTA told "Globes", "Relations with Mesilot were a case of the tail wagging the dog."
Mesilot, owned by Canada's Delcan Corporation and Israel's Amy Metom Engineers and Consultants Ltd., provides support services for projects, and was responsible for the management of tenders, implementation of preliminary work, and other services. At its peak, the company had about 100 employees, mostly engineers, project managers, and foreign experts.
More than NIS 1 billion has been spent to date on preparation and infrastructure work for the Tel Aviv light rail.
By terminating the contract with Mesilot, NTA lost its professional know-how and it will probably take a long time before the company can rebuild its own team. A possible interim solution under consideration is to approach similar companies, such as Israel National Roads Company Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on September 7, 2010
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