Khamenei eliminated, but EAPC secrecy order extended in the dark
The Knesset Foreign Affairs and Defense Committee has extended the secrecy order on EAPC until the end of the year amid arbitration with Iran. The Government Companies Authority, which is pushing for privatization, was excluded from the discussion. Critics argue that the lack of financial transparency turns the company into a "backyard" for the Ministry of Finance.
The historic secrecy order on the state-owned energy company EAPC was extended until the end of the year during a closed-door session of the Knesset Foreign Affairs and Defense Committee. Globes has learned that despite the Government Companies Authority's plans to privatize EAPC, its representatives were not invited to the discussion. Government and external sources allege that the company has become a "backyard for the Ministry of Finance" and that the secrecy order is obsolete.
Following a brief hearing last May, the committee extended the secrecy until the end of July. However, immediately upon the expiration of that period, a new order was unexpectedly published, extending the secrecy through the end of the year.
Advocate Elad Man, legal advisor to the "Hatzlacha" association, has demanded explanations from the Attorney General, stating: "The amendment's publication lacked public justification regarding what has changed since the previous decision, why the full requested term was approved, and whether more limited alternatives were considered."
Privatization Hurdles
Government Companies Authority Director Roi Kahlon is currently promoting EAPC's privatization. However, the sweeping secrecy order covering financial data, bonuses, and salaries remains a major obstacle. Authority representatives have previously stated that this secrecy harms the company and fuels disinformation.
"When dealing with a broad order affecting press freedom and the public's right to know, one cannot settle for a technical publication," Adv. Man told Globes, adding that the association is considering further legal action.
From Iran Arbitration to Environmental Risks
EAPC was established in the late 1960s as an Israeli-Iranian partnership. Following the 1979 Iranian Revolution, the partnership dissolved, leading to decades of multi-billion dollar arbitration. Although a 2015 ruling ordered Israel to pay Iran one billion dollars, the Ministry of Finance has refused to transfer the funds.
A State Comptroller's report last year criticized EAPC's business conduct, noting that 47% of its pipelines traverse environmentally sensitive areas. The report also highlighted that an external legal advisor received 7.6 million shekels over two years, and the company spokesperson served for years without a tender. The Comptroller further noted that the company fails to separate management expenses from revenue costs, hindering comparisons with other state firms.
"No Real Reason for Secrecy"
A Ministry of Finance source told Globes: "This is fictitious secrecy; everyone knows everything. In the past, they claimed state ownership carried diplomatic risks, yet the company remains state-owned with no damage caused." A former senior official added: "Khamenei has been eliminated, and arbitration is our problem with the Iranians. It is more likely the company has become a 'backyard' for the Treasury, where appointments are made without oversight."
Over 300 objections were filed against the extension. The "Adam Teva V'Din" organization emphasized that even defense companies do not operate under such sweeping secrecy.
The Ministry of Finance stated: "The order was approved legally. Classified information has been reduced, and the order details topics that are not secret." Committee Chairman Boaz Bismuth noted that all relevant parties were invited to classified discussions, and the Government Companies Authority never requested to participate. EAPC stated: "Secrecy is handled by legal authorities on behalf of the state for national security reasons."
