Tech company BATM (TASE: BVC; LSE: BVC) founder and controlling shareholder Dr. Zvi Marom, who over 20 years ago employed Benjamin Netanyahu as a consultant, is angry and not at his friend the prime minister.
He told "Globes", "It is not being serious when people (from the tech industry) are threatening to take their money out of the country, if decisions are not made according to their wishes. Israeli society is quite violent. All this ‘I am taking my money and going from here, stop me’ is unacceptable to me. These threats precisely mirror the threats from MKs on the other side."
Marom, one of Israel’s veteran tech entrepreneurs, is talking about the declarations by some tech companies that will be taking their money out of Israel following the promotion of the judicial reform by the government, claiming that if it is passed it will harm the democratic character of the State of Israel, increasing the financial risks.
Marom adds, "You hear those who are making a lot of noise. I am not at all sure that industrial companies in Nazareth Illit or Migdal Ha'Emek use 'advanced technologies' less than Lemonade or Papaya Global, for example.
"Attributing Israel's technology to all kinds of venture capital funds, and to companies that have a large value for reasons some of which are technical, is a wrong view of Israel as a tech country. I don’t recall that some of the people speaking on behalf of high-tech were elected by anyone."
He adds, "Unfortunately, those who are shouting - as a generalization of course - are not the ones who agreed to join the effort to improve education. It's an element no less important in keeping high-tech in Israel than if someone opens a bank account in the US. The fact that Israel is a technology-biased country is an advantage that should permeate down and reach all sectors. That everyone will benefit from it, not just the 'electric scooter crowd'."
Marom would not actually like to see the changes in the judicial system as they currently are in the proposed Knesset bill, "But from there to calling everything that happens the 'end of democracy'? And we should also stop using Nazi symbolism."
He has no doubt that reforms are required in Israel not only in the judicial system but also the civil service. "Bureaucracy is killing us and the judicial system is no different," he claims.
Is the required reform in your opinion similar to the reform being proposed?
"I have no doubt that the reform as it is being proposed will not pass. Two principles of democracy are still that the majority decides but also that minorities are not trampled on. I don’t criticize people for what they say but what they ultimately do. So that’s what they said but you don’t have to get too excited. The reform won’t pass because it will have inertia and insufficient energy to carry on until the end. There will be a compromise."
Marom sees a leadership crisis on both sides. "A real leader does not get swept along by the voters. I expect both the prime minister and the leader of the opposition to lead events and not get swept along. The president is trying but his weight is restricted. The office does not have the status that Chaim Weizmann had in his time."
Despite everything Dr. Marom ends on an optimistic note. "I have spoken with managers working for tech companies with many people and some of them see an opportunity here - to really discuss what high-tech needs to be sustainable and strengthen the country in the long term. When the crisis will be over we will reap something sweet from it."
What would you say to your friend Benjamin Netanyahu?
What I would say to Bibi I say personally. In general, being the Prime Minister of Israel today is a lousy job. I don't understand why so many people want this role.
BATM is traded on the Tel Aviv Stock Exchange (TASE) and London Stock Exchange (LSE) with a market cap of NIS 465 million, down 55% over the past year. The company has a communications division and a medical device division which stresses diagnostics. Marom, who stepped down as BATM CEO last year, serves on the board of directors and is controlling shareholder.
Published by Globes, Israel business news - en.globes.co.il - on March 1, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.