Potential Conflicts of Interest May Hamper New Finance Committee Chair

MK Liran Abebe Ben-Horin, designated to chair the temporary Finance Committee, faces potential conflicts of interest that could limit her ability to address key issues, particularly concerning banks. If she delegates discussions on banking matters to another MK, she risks becoming a chair with "tied hands," as the committee chair holds significant influence over the Treasury and the bodies under its purview, including banks. A substitute chair would not possess the same authority, potentially weakening the committee's power to act as a public watchdog against banks. The complication arises because Ben-Horin-Alexandrovich Public Relations, co-owned by her husband Itai Ben-Horin, represents Mizrahi Tefahot Bank. Ben-Horin stated that while government conflict-of-interest rules don't apply to the Knesset, she is prepared to adhere to the strictest standards and will appoint someone else if she cannot handle a specific issue. A review by Calcalist reveals the Finance Committee held 41 discussions on banking and capital markets between 2024 and 2026, highlighting the significance of these topics. The article questions how Ben-Horin can effectively lead discussions on banking, even on broad issues affecting all banks, given her husband's representation of Mizrahi Tefahot. Former Finance Committee chairs, like Moshe Gafni, have historically played a crucial role in mediating between banks, the Treasury, and the public, notably on issues like a tax on banks' excess profits. Gafni actively engaged with banks and the Treasury, even meeting with Finance Minister Bezalel Smotrich regarding this tax, which affected all banks but raised questions about Ben-Horin's ability to exert pressure given her husband's advisory role. Gafni has also been vocal about banks' high profits and interest rates, questioning high overdraft fees and demanding banks examine potential discrimination in interest rates based on socioeconomic status. Concerns have been raised within the Knesset about Ben-Horin's ability to comment on banking matters while her husband represents a major bank. If she avoids banking issues entirely, her role as committee chair would be significantly diminished. Gafni has previously pushed for banks to pay interest on credit balances and criticized interest rate hikes and bank profits. He also proposed legislation in December 2022 to limit mortgage interest rate increases and advocated for reducing distribution fees on mutual funds to lower investor management fees, often facing opposition from banks. Previous chairs, such as Gafni, Yaakov Litzman, and Alex Kushnir, did not have business ties that could create similar limitations. Ben-Horin's appointment is historic as she would be the first woman to chair the Finance Committee, even temporarily. She brings experience from roles at the Ministry of Communications and the Prime Minister's Office. However, her husband's business connections and her own past role at the Keystone Infrastructure Fund raise concerns about conflicts of interest. Calcalist previously reported that Ben-Horin-Alexandrovich's client list includes numerous companies whose interests may come before the Finance Committee, such as Altshuler Shaham, Cal, Strauss, Teva, Fox, Mizrahi Tefahot Bank, NTA, Africa Israel, Ashtrom, SolarEdge, and Samsung. While MKs are not required to sign conflict-of-interest agreements, they must declare personal interests. Ben-Horin would need to declare her connection to any client of her husband's firm whose interests are discussed by the committee. The 'Bayit Yehudi' party stated that Ben-Horin will serve the public according to law and proper administrative procedures, including conflict-of-interest arrangements, as she has in past public roles.