Incoming Finance Committee chair faces conflict-of-interest scrutiny over extensive business ties

The tapping of B’Yachad party MK Liran Avisar Ben Horin to lead the powerful Knesset Finance Committee is drawing scrutiny over potential conflicts of interest stemming from her husband’s role as a consultant for numerous major businesses across the economy.

This week’s appointment of the first-time lawmaker, who will be the committee’s first female chairperson, has sparked controversy because of her marriage to Itay Ben Horin, co-founder and CEO of influential public relations and strategic consultancy firm Ben Horin Alexandrovich, which is one of Israel’s largest.

The PR and strategic consulting firm represents and advises a roster of prominent clients across the main sectors of the economy, including food manufacturer giant Strauss Group, Mizrahi Tefahot Bank, pharmaceutical mogul Teva, Ashtrom Construction, real estate company Africa Israel, investment house Altshuler Shaham, fashion and retail conglomerate Fox Group, credit card company Cal, and Samsung.

In her most recent position, Avisar Ben Horin served as managing director at publicly traded investment firm Keystone Infrastructure Fund. The firm has stakes in the country’s largest transportation company Egged and cellular operator Hot Mobile, and controls power plants and desalination facilities.

As chair of the Finance Committee, Avisar Ben Horin, who previously served as director general of the Communications Ministry — and had a conflict of interest agreement regarding communications companies represented by her husband — will control the agenda for discussing legislative proposals in areas such as banking, real estate, infrastructure, industry, food, lending, fashion and trade.

The committee discusses and votes on policies related to the allocation of funds in the state budget, all types of taxes, customs duties and excise, loans, as well as matters related to foreign currency and the cost of living.

Companies across infrastructure, retail and finance have a direct stake and often participate in the committee’s discussions ahead of decisions on the state budget, public investment, tariffs, land, competition rules and regulatory changes.

Under the Knesset’s ethics rules, a lawmaker must recuse themselves from discussions in which they or their spouse has a personal interest, which could potentially prevent Avisar Ben Horin from participating in many discussions.

Addressing the concerns, Avisar Ben Horin expressed willingness to subject herself to “the strictest rules,” adding: “If there is a matter that I cannot deal with, I will not deal with it, and I will appoint someone else in my stead.”

If Avisar Ben Horin is forced to recuse herself from committee meetings, the question is who would set the agenda, run the discussions and lead the negotiations in her place.

In response, B’Yachad said that “Avisar Ben Horin will assume her role and act in the interest of the Israeli public and in accordance with the law and principles of proper governance, including adhering to conflict-of-interest arrangements, as she has done in her public positions over the past twenty years – including as director general of the Communications Ministry and Chief of Staff to the director general of the Prime Minister’s Office.”

In a letter sent Wednesday, the Movement for Quality Government in Israel issued a request to Knesset Legal Adviser Sagit Afik to review concerns about potential conflicts of interest to preserve public trust in the committee’s work.

“In light of the scope and characteristics of the professional and business ties, and given the central role of the Finance Committee in the work of the Knesset, there is room for an advance examination of potential conflicts of interest that may arise during Avisar Ben Horin’s term as the committee chair,” the letter read. “Applying the conflict-of-interest rules requires an individual examination that balances the need to protect the integrity of the parliamentary process and public trust against the Knesset member’s ability to fulfill her role.”