Bezeq recently demanded current and former executives at its subsidiary Bezeq International a refund of some of the bonuses

Posted on Mar 30, 2021 by Ifi Reporter

Bezeq recently approached current and former executives at its subsidiary Bezeq International, demanding a refund of some of the bonuses given to them. This follows the unexplained balances case that led to the write-off of a value of NIS 278 million in the company.
For now, the company has only approached board members since 2017, although the provision goes back to 2002. The appeal was made to the current CEO, Ran Gurion, who is estimated to be required to return about NIS 150,000, and to the previous CEO, Moti Elmaleh, who is estimated to be required to return about NIS 1 million. All the vice presidents who worked under them were also contacted. The exact amount of bonuses has not been announced, but it is tens of millions of shekels in total.
The discrepancies in Bezeq International were due, among other things, to the non-imputation of costs from previous years due to the payment of advances to suppliers, to the profit and loss statement, and to the improper recognition of expenses in advance. Reverse its reports until 2017, while recognizing a NIS 150 million reduction in net profit from 2017.
An external inspection report prepared by the firm of Fahn Kana & Co. noted that no findings were found in the findings that raise suspicion of the occurrence of an embezzlement incident during the period under review.
However, the inspection team noted in the report that "our work does not completely rule out suspicion of embezzlement in the years 2003-2001." Following the affair, the company's board of directors terminated the employment of 4 non-officers in Bezeq International's finance department, who were involved in the events, including the former finance director (who has held the position since) and the company's deputy accountant.
In publishing its reports for 2020, Bezeq reported that the company's board of directors had made a decision to examine a merger between the activities of the subsidiaries yes and Bezeq International, and to leave Pelephone independent. The decision came against the background of the two companies' weakness in recent years.
Bezeq International, which serves as an Internet and international calls provider, ended 2020 with an operating loss of NIS 241 million and a net loss of NIS 275 million.
 Since 2019, Bezeq has written off NIS 503 million of the subsidiary's value, among other things in light of irregularities, from the deletion of dual subscribers and from the point of view of the Ministry of Communications to eliminate the customary split in Israel between infrastructure and Internet providers. The value of Bezeq International's activity was NIS 145 million at the end of 2020, compared with NIS 1,061 billion at the end of 2018.


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