Finance Ministry attempts damage control over Kahlon’s silence

Antitrust Authority chief David Gilo, who announced his resignation on Monday, met with Finance Minister Kahlon before making the announcement, The Marker reports.

According to the report, Gilo met last week with three ministers whose responsibilities have a bearing on the natural gas market: Economy Minister Aryeh Deri, Energy Minister Yuval Steinitz and Kahlon. Gilo reportedly decided to step down after none of the three signaled that they would support Gilo in his objection to a revised draft drawn by the government on the regulation of the natural gas market.

This afternoon, Kahlon’s ministry issues a press release explicitly citing the minister’s personal friendship with a businessman who would be harmed by Gilo’s more stringent draft compared to the government’s plan which Gilo opposes.

“The finance minister’s market position has not changed and he supports dismantling the gas monopoly and opening the market to competition, and sees great importance in developing the gas market. Minister Kahlon believes competition is the consumer’s best friend and therefore every monopoly should be dealt with,” the statement reads.

“As he entered his position, the incoming minister, Moshe Kahlon, announced that he would avoid dealing with the gas market […] because of his personal ties to the issue (his friendship with Koby Maimon, who is head of one of the groups with holdings in the gas market).”

“The finance minister announced to all authorities with any relevance to the issue, including the Finance Ministry’s legal adviser, that his authorities as finance minister on this specific issue will be transferred to the prime minister.

“In the meeting with Antitrust Authority chief Prof. David Gilo the finance minister remarked that he will not be able to speak to Gilo on the matter. The minister is certain the professional bodies from all government ministries will continue to lead the team until a draft which is appropriate and beneficial for the public in Israel will be found,” the statement concludes.