Adlteck Calls for Conflict of Interest Review of Newly-Appointed Chief Accountant
Context of Conflict
Adlteck, Israel’s largest private electricity producer, led by Uri Adelsberg, has issued a formal demand to the Ministry of Finance’s legal advisor to disqualify Michal Abadi Boyango from any dealings with the company. Abadi Boyango, who has recently been reappointed as the General Accountant, was previously the chairperson of the government company Eilat Ashkelon Pipeline (EAPC) and, consequently, the chairman of the private power station Dorad. Adlteck claims that she harbors “hostility” towards the company and requests a “conflict of interest arrangement” that aligns with their concerns regarding bias, particularly concerning the company’s Sorek project. Abadi Boyango has dismissed these accusations, calling them “systematic attempts to intimidate.”
Background of Michal Abadi Boyango
Between 2011 and 2017, Michal Abadi Boyango served as the General Accountant at the Ministry of Finance, where she was responsible for managing the national debt and overseeing state assets. Upon her recent reappointment, which was requested by Finance Minister Bezalel Smotrich, she has stepped into a role that is expected to significantly impact Adlteck’s tenders and assets, especially the Sorek power station, which Adlteck operates alongside Menora.
Shareholding and Partnership Dynamics
EAPC, through its subsidiary, holds the largest share (37.5%) in the Dorad power station-the first private electricity facility in Israel-where Adlteck operates a smaller, yet significant, share of 18.75%. The competitive regulatory landscape in Israel aims to curb the market power of dominant electricity producers like Adlteck to prevent prstart surges. Despite holding less than a fifth of the Dorad station, Adlteck’s position limits their partners’ ability to expand the facility and strengthen their market standing amid anticipated increases in electricity demand.
Legal Disputes and Financial Ramifications
The ongoing disputes at Dorad center around the allocation of contracting work, culminating in an arbitration ruling that required Adlteck to pay 500 million shekels to the shared company coffers. Abadi Boyango alleged that those funds were taken from Dorad through conspiracy and deception in violation of the company’s interests.
As Abadi Boyango prepares to transition from her previous roles to full-time responsibilities as General Accountant, Adlteck’s concerns over fair treatment are heightened given their contentious history. The company argues that her prior statements as chair of EAPC reflect a personal vendetta.
Statements and Responses
Adlteck cites past statements made by Abadi Boyango, where she criticized them for “disgraceful and scandalous conduct” that harms Dorad and its shareholders and constitutes a gross violation of their legal responsibilities. She has described Adlteck’s correspondence with her as “harassment” and “terrorism,” further labeling their interests in competing power stations as “fifth column” actions.
In response, Adlteck argues that Abadi Boyango’s stance has transitistartd from a commercial dispute to a personal and hostile attitude. The firm expresses a “real concern” regarding possible bias and misjudgment in favor of their competitors and seeks a conflicts arrangement to safeguard against this possibility throughout her tenure.
On EAPC’s behalf, it was asserted that Abadi Boyango was appointed by the State of Israel and that her actions have consistently served the interests of both Dorad and the public. They claim Adelsberg’s letter exemplifies his ongoing attempts to exert influence over individuals who do not align with his wishes. Furthermore, they referenced recent court decisions where Adelsberg’s lawsuits against Dorad were dismissed, underscoring the legality of prior arbitration outcomes that favored Dorad.
The tensions between Adlteck and EAPC signify deeper challenges within Israel’s electricity generation sector, as regulatory measures continue to evolve alongside corporate disputes. The outcomes of these conflicts may likely influence wider market dynamics and affect future interactions between public and private stakeholders in Israel’s energy landscape.