New Knesset Finance Committee Chair Faces Numerous Conflicts of Interest

MK Liran Avishar Ben-Horin, from the "Achdut" party, has been appointed as the temporary chair of the Knesset Finance Committee, a move that surprised many in the economy. While Ben-Horin brings a rich resume, including her past role as Director-General of the Ministry of Communications and a partner at Keystone Fund, she also faces a long list of potential conflicts of interest. Some stem from her previous positions, while others arise from her husband, Itai Ben-Horin, who owns the public relations firm Ben-Horin-Alexandrovich. The firm's website lists dozens of businesses as clients, including Mizrahi Tefahot Bank, Teva, Cal, Fox, Strauss, Samsung, and Altshuler Shaham.

Knesset members, including committee chairs, are required to declare conflicts of interest. The Knesset's legal department reviews these declarations and provides guidance on how to proceed. Unlike ministers, Knesset members are not legally obligated to have a formal conflict of interest arrangement, operating instead under Knesset ethics rules. The scope of any arrangement is determined on a case-by-case basis.

While conflict of interest arrangements have been made for MKs in the past, there is no legal requirement for them, and the framework is based on Knesset members' ethics rules. "Although the ethics rules for Knesset members prohibit situations of conflict of interest, the application of these rules for MKs differs from that for ministers and deputy ministers, and in most cases, MKs do not have conflict of interest arrangements," explained Professor Itai Siman-Tov of Bar-Ilan University's Law Faculty. He added that committee chairs are not required to have special conflict of interest arrangements like ministers and deputy ministers.

The Ethics Committee handles complaints related to ethics rules, including failure to disclose conflicts of interest. An MK who fails to declare a conflict of interest can face sanctions such as reprimand, suspension from Knesset sessions, loss of speaking rights, and prohibition from submitting bills. Professor Siman-Tov advocates for applying similar restrictions to committee chairs as to ministers, suggesting that new chairs should meet with the Knesset's legal advisor to determine if limitations are needed regarding legislation affecting entities with which the chair has a connection.

Past Knesset Ethics Committee decisions offer guidance. In one instance, Minister Miki Zohar, then chair of a special committee, held sessions concerning infrastructure in his residential neighborhood and approved his wife's ownership of properties there, leading the committee to rule he had violated ethics rules. In another case involving former MK Yoel Hasson, the committee clarified that an MK should avoid chairing discussions concerning a relative, especially if they are the sole participant and voter. Recommendations from a 2006 committee, which were not adopted, suggested that conflicts of interest exist not only with direct interest but also with indirect interest, such as a family member's or a connected business entity's interest. These recommendations also noted that while an MK's role inherently involves potential conflicts, especially concerning their party or sector, barring them from participation could undermine their function. The ideal solution, it was suggested, is to balance interests as much as possible.