Bill loosening rules for appointing government corporation heads advanced by Knesset

The Knesset votes 46-35 to advance in a preliminary reading a bill proposed by Likud MK Avichai Boaron aimed at loosening the rules for appointing the heads of government corporations, granting ministers far greater leeway than previously allowed.

The approval of Boaron’s bill comes shortly after lawmakers advanced legislation proposed by Likud MK Nissim Vaturi that would permit associates of ministers to be appointed as heads of government companies without needing “special qualifications.”

Under the current system, ministers nominate candidates from a pool of qualified candidates who are screened and vetted by an independent committee.

Boaron’s bill would allow ministers to directly nominate candidates of their choice, including those who do not have the necessary educational and experience qualifications.

The bill would also narrow the definition of political, personal, and business ties that disqualify a candidate, and allow the relevant ministers to appoint the head of the committee vetting the suitability of their chosen candidate.

“The purpose of the bill is to change the mechanism for selecting directors in government companies, so that instead of the directors being selected from a closed list by the minister to whom that government company is subordinate, the appointment of directors will be carried out by the ministers subject to uniform criteria to be determined by law and regulations” and approved by the review committee, the bill’s explanatory notes state, adding that the proposal is aimed at ensuring “representation of people from the social and geographical periphery in government companies.”

In a statement last month, the Attorney General’s Office slammed Boaron’s bill, declaring that it would “turn government companies into a pool of positions for the appointment of insiders.”

Such changes “harm the professionalism of the companies’ management and will harm the perception of their credibility and professionalism in the competitive business environment in Israel and abroad,” causing economic damage, the statement said.

Boaron’s bill is identical to a proposal by Regional Cooperation Minister David Amsalem, who has been pushing to overhaul the current appointments system. Amsalem’s efforts led then-Government Companies Authority director Michal Rosenbaum to claim in 2023 that he was working to make illegitimate and political appointments at dozens of government companies.

In response, Amsalem defended his push to fire Rosenbaum and his attempts to appoint personal acquaintances to senior positions in government companies, saying he preferred to tap candidates he knows well.

Boaron’s bill will now move to the Knesset House Committee to determine which committee should prepare it for the next three readings necessary for it to become law.