Amos Luzon Threatens Defamation Suit Amid Dorad 2 Power Plant Dispute
The conflict surrounding the Dorad 2 power plant project has intensified, with Dorad's chairman, Amos Luzon, threatening to sue director Ziv Ironi for defamation. Ironi, representing the Adaltak group, accused Luzon of being a "criminal" and claimed he threatened other directors and executives. This dispute unfolds amid a severe crisis over the project's land, delayed financial closure, and contentious negotiations with Shte'a (Ashkelon-Eilat Infrastructure Services), a subsidiary of the Europe-Asia Pipeline Company (KZEA).
A series of letters exchanged between Luzon and Ironi reveal a deeply strained relationship, including accusations of pressure on directors, breaches of corporate governance, and threats of legal action. Luzon's lawyers stated that Ironi repeatedly called Luzon a "criminal" during a recent board meeting and accused him of threatening board members. They demanded Ironi retract his statements or face a financial lawsuit. Ironi denied the allegations, refused to retract, and cited Luzon's past convictions as justification for the term "criminal." He also accused Luzon of silencing him during meetings and described Luzon as a "dictator."
Ironi criticized the decision-making process, highlighting the board's approval of a 46 million euro payment for a turbine slot from General Electric despite no secured lease extension for the land from Shte'a. He warned this led to Shte'a demanding higher land fees, causing the failure to meet the June 30 financial closure deadline and resulting in lost revenue tied to the Electricity Authority's schedule. Ironi accused Luzon of personally managing negotiations with Shte'a, bypassing company management, and exerting pressure on legal advisors and others involved.
Luzon rejected these claims as baseless and defamatory, demanding a retraction. The acrimonious tone between the two reflects a deep rift among Dorad shareholders at a critical juncture for the Dorad 2 project, one of Israel's largest ongoing power generation initiatives.
Compounding the challenges, Dorad's management and shareholders face regulatory hurdles. The Competition Authority recently advised against approving the license for the new power plant, citing concerns over reduced competition and increased market concentration. Adaltak's holdings in several natural gas power plants, totaling about 3.6 gigawatts, would give it over 20% of Israel's conventional power capacity by decade's end, exceeding regulatory thresholds designed to promote competition in the electricity sector.
