IEC CEO Eli Glickman has taken the initiative and ordered restructuring at the utility, without waiting for the board's audit committee report.
Sources at Israel Electric Corporation (IEC) (TASE: ELEC.B22) say that CEO Eli Glickman has taken the initiative and ordered restructuring at the utility, without waiting for the findings of the report by the board of directors' audit committee on the NIS 1.5 billion cash flow shortfall. A source in IEC's management told "Globes", "He does not intend to settle accounts with anyone at the company."
The Ministry of Finance expects IEC to take "drastic measures" as a condition for the ministry's consent to the utility's request for an additional NIS 1.5 billion in increase the government guarantees. A ministry source told "Globes" that it was not demanding for heads to roll at IEC, but that it expects the utility to sell assets and withdraw the remaining NIS 1.4 billion in the special trust fund which finances employees and pensioners' free electricity and other perks.
In his latest report, State Comptroller Joseph Shapira slammed IEC for depositing these funds, and said that they should be restored to the government immediately.
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
Amiram Barkat and Adrian Filut