Sources inform “Globes” that former Ministry of Finance director general Shmuel Slavin is slated to be appointed chairman of the board of Israel Military Industries (IMI). Slavin, Prime Minister Ariel Sharon’s candidate, has agreed to accept the position.
IMI is undergoing a severe economic crisis that is jeopardizing its future. The company has functioned for the past six months without a permanent chairman. Since outgoing chairman Yaacov Lifshitz left his position in March 2001, the IMI board has convened only a few times. The meetings were conducted by one of the board members chosen at the beginning of the meeting.
Slavin, 48, studied at a yeshiva in Kfar Habad, but left and joined the Israel Defense Forces. He holds BAs in economics and international relations, as well as an MA in business administration and finance. He was chief economist at the Ministry of the Interior and economic advisor to the Minister of Energy. He has been CFO at Teshet Tourist Enterprises & Aviation Service of the El Al group since 1983. In 1986-1989 he was economic advisor to the Prime Minister, Ministry of Labor and Social Affairs director general, and deputy general manager of the Yediot Ahronot concern.
Slavin was appointed general manager of Mifal Hapayis in 1994 and Ministry of Finance director general in 1997. Since his resignation from the Ministry of Finance, Slavin has been general manager of Mehadrin Real Estate of the IDB group.
IMI’s situation has deteriorated over the past year, and its operating loss increased 13% to $31.3 million in 2000. The company also suffered a heavy $67.7 million loss in 1999. IMI had an equity deficit in 2000.
In view of the company’s demand for $50 million to continue functioning and pay its pensioners, IMI’s future is currently being considered. Alternatives include continuing as an independent company, merger with another government company, such as Israel Armaments Development Authority (Rafael), and privatization. The company workers organization is threatening to completely halt production if one or more of these alternatives is adopted. The failure to appoint a full-time chairman has affected IMI’s management of several urgent matters, including competing in the tender for upgrading tanks in Turkey, valued at over $1 billion.
Sources close to Slavin told “Globes” that he had indeed been offered the post of IMI chairman, adding, “He's giving it favorable consideration.”
Published by Israel's Business Arena on August 29, 2001