Top executives at Israel Electric Corporation (IEC) (TASE: ELEC.B22) are demanding that CEO Eli Glickman and chairman Yiftah Ron-Tal give their backing and support to CFO Harel Blinde and head of the fuel directorate Shimshon Brockman amid reports that they are to be fired.
Tomorrow IEC's board of directors convenes to discuss the external report about the liquidity hole and during the meeting Blinde, Brockman and four other senior executives will recount their version of events. All those who have been warned have already hired lawyers to prepare their response at the meeting.
Tension is likely to reach breaking point just as the ratings agencies need to be persuaded about the stability of the IEC ahead of its NIS 4 billion offering to finance activities.
A letter written by all six of the IEC's VPs (except Blinde) and legal advisor David Yahav reflects the storm embroiling the utility.
The letter says, "we the top management express our full support for the staff of the finance division and the fuel directorate in the storm of unfair and unworthy criticism. The IEC has been caught up in an unprecedented electrical and financial hurricane for more than a year. No other organization in Israel would have withstood the impossible tasks imposed upon it."
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2012
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