Finance Ministry accuses Israel Chemicals of golden-share violations

Attorney Yoel Briss, the Finance Ministry’s legal adviser, on Sunday sent a letter to Israel Chemicals CEO Stephan Borgas demanding information about the transfer overseas of the company’s activity and that of its subsidiaries. Among other things, Briss asked for information about the moving of production lines, marketing setups, assets essential to the existence of Israel Chemicals, know-how and technology, other substantial activity or the conducting of such activity, and the transfer of “key service factors.” Briss also asked whether the company plans to change the ratio between its activity in Israel, that of its subsidiaries or that of the entire group to overseas activity. Briss’s letter follows an initial letter dated February 23 that asked for information and explanations about the layoff plan announced by Israel Chemicals. Sunday’s letter follows a series of assertions aimed at Prime Minister Benjamin Netanyahu concerning the breaching of the golden-share terms raised by the workers’ committees at Israel Chemicals and at Bromine Compounds. The workers say Israel Chemicals did not ask the state for permission to move its activities overseas even once over the past seven years, although, according to the workers, this is required under the golden-share terms. “There is no connection between the state’s golden share in Israel Chemicals and regular management of the enterprises and the need for cutting costs at the company’s plants,” Israel Chemicals said in a statement. “The streamlining plan is designed to strengthen and safeguard the existing of the plant in Israel, while ensuring the company’s competitiveness against its major competitors in the global markets in which it operates.”