Israel's Incoming Government Faces Major Public Sector Vacancies
Translated & summarized from Calcalist by baba
Israel's incoming government faces a critical decision regarding the Government Companies Authority, which oversees hundreds of senior appointments in state-owned firms. The authority's placement is a key coalition negotiation point, with 15 senior positions currently vacant and more expected to open. Appointments have been frozen since July 2026 by the Attorney General to prevent the new government from being presented with faits accomplis. The decision on where the authority will sit, Finance Ministry, Prime Minister's Office, or another senior ministry, will impact its ability to manage these vital companies.
The story in 5 lines · by baba
- 15 senior public sector jobs in Israeli state-owned companies are currently vacant, awaiting the new government.
- The future of the Government Companies Authority is a key point in coalition negotiations.
- Appointments to state-owned companies have been frozen since July 2026 by the Attorney General.
- The authority oversees hundreds of positions in critical sectors like defense, energy, and transportation.
- Vacant CEO roles include major firms like Mekorot, Israel Railways, and Noga.
The formation of Israel's new government is expected to address the significant issue of ministerial responsibility for the Government Companies Authority, a key body overseeing numerous senior appointments. Currently under Minister Dudi Amsalem, the authority's future placement is a point of contention in coalition negotiations. Its director general, Roi Kahlon, appointed two years ago, has overseen initiatives like the potential IPO of defense firms, the merger of Cross Israel, and the sale of Zim. Kahlon also pushed for capital raising by state-owned companies and the privatization of State of Israel Investment Fund's holdings in Bank Yahav, and was involved in the 2021 privatization of the Port of Haifa.
The authority's control over hundreds of senior positions, including chairpersons, CEOs, and directors in state-owned companies, alongside involvement in company offerings, makes it a coveted portfolio for ministers. These companies operate in critical sectors such as defense, energy, water, transportation, ports, housing, and infrastructure. Prominent companies include the Israel Electric Corporation, Mekorot, Israel Aerospace Industries, Rafael, Israel Railways, and the Ports Company.
Currently, 12 senior positions in state-owned companies are vacant, with three more set to become vacant by the end of 2026. This situation could leave some companies without permanent leadership for extended periods, potentially impacting their operations. Acting directors may be appointed to bridge these gaps, and interim chairpersons will be elected for board meetings in companies lacking a permanent chair.
Potential scenarios for the authority's placement include returning it to the Ministry of Finance, which could foster immediate synergy with budget and tax authorities but might lead to a short-term focus on dividend collection over long-term investment. Alternatively, placing it under the Prime Minister or a senior minister with coalition weight could provide the political backing for stalled privatizations, though this carries the risk of increased political appointments and cronyism.
Since the Knesset's dissolution in late July 2026, all appointments of chairpersons, directors, and CEOs in state-owned companies have been frozen following a directive from Attorney General Gali Baharav-Miara, who advised restraint during the election period. This freeze has been extended until the new government is formed. Among the vacant key positions are the CEOs of Mekorot, Israel Railways, Noga (managing the electricity system), Natural Gas Routes, and Dira Le'Haskir. For instance, the CEO position at Mekorot became vacant on January 1, 2026, with the former CEO Amit Lang's resignation, and Israel Railways has been without a CEO since Moshe (Shiko) Zane's resignation in October 2025.