Israeli Energy Firm KESAA Keeps Executive Bonuses Secret Despite Legal Battle
KESAA (Europe Asia Pipeline Company), a government-owned Israeli energy firm, has successfully maintained secrecy over the bonuses and incentives paid to its executives in recent years despite a legal challenge lasting over two years. The dispute began in March 2024 when attorney Elad Mann from the nonprofit organization Hatzlacha filed freedom of information requests to several government companies in the energy, infrastructure, and transportation sectors, seeking disclosure of executive bonuses for 2022 and 2023. While other government entities, including Israel Railways and the Israel Land Authority, disclosed bonus payments totaling millions of shekels, KESAA refused, citing a confidentiality order that classifies its operations and reports as secret.
The confidentiality order dates back to KESAA’s founding in the late 1960s as a joint Israeli-Iranian venture to transport oil via pipeline from Eilat to Ashkelon. Although renamed in 2017, the company’s activities remain under strict secrecy, with the confidentiality order extended until the end of 2026. After nearly a year of no disclosure, Hatzlacha petitioned the Be’er Sheva District Court to compel KESAA to comply with the freedom of information law. The Ministry of Finance supported KESAA’s refusal, arguing the requested information falls under the secrecy order and related criminal provisions.
The State Prosecutor’s Office defended the confidentiality, stating the petition challenged legislative and executive decisions approved by the Knesset’s Foreign Affairs and Defense Committee. The court ultimately sided with KESAA, and Hatzlacha withdrew its petition about three weeks ago, acknowledging it had exhausted legal options. Attempts to persuade the court to at least reveal aggregate bonus amounts or executive ranks without compromising state secrets failed.
KESAA operates oil unloading, storage, and pipeline infrastructure in Ashkelon and Eilat, handling about 40% of Israel’s cooking gas imports and managing fuel transport facilities. Its subsidiary, TAAS (Eilat Ashkelon Infrastructure Services), holds a significant stake in the Dorad power station. Recently, the Israeli Government Companies Authority began exploring the possibility of privatizing KESAA, despite the company’s financial reports remaining undisclosed. KESAA declined to comment on the matter.
