Israeli Parliament Extends Secrecy Order on Government Energy Company QITAF Amid Privatization Plans
The Israeli Knesset's Foreign Affairs and Defense Committee has once again extended the secrecy order on QITAF, the state-owned energy company, until the end of the year. This decision was made in a closed session without inviting QITAF representatives, despite ongoing government plans to privatize the company. Critics from within and outside the government describe the secrecy as excessive and claim it serves as a "backyard" for the Ministry of Finance, with transparency effectively lost.
The secrecy order was initially extended in May until the end of July after a brief hearing, but a new order was unexpectedly issued immediately after that period, prolonging the confidentiality until year-end. Legal experts and transparency advocates have challenged the lack of public explanation for the extension and the absence of alternative, narrower confidentiality measures. The Government Companies Authority, which is pushing for QITAF's privatization, argues that the broad secrecy prevents progress, as key financial data, bonuses, salaries, and business results remain undisclosed.
QITAF was originally established in the late 1960s as an Israeli-Iranian partnership for oil transport, but relations ended after the 1979 Iranian revolution. Since the 1990s, the two countries have been engaged in multi-billion-dollar arbitration proceedings, including a 2015 ruling requiring Israel to pay Iran $1 billion, which Israel has refused. The company was restructured in 2017, maintaining the secrecy order. A State Comptroller report last year criticized QITAF's business practices, environmental risks, and lack of transparency, noting that nearly half its pipelines run through environmentally sensitive areas and that management bonuses are based on easily met targets.
The secrecy order has been contested by over 300 public objections, with organizations for freedom of information and environmental law calling it unjustified and outdated, especially given the changed diplomatic context with Iran. The Ministry of Finance defends the order as lawful and partially limited, while the Knesset committee chairman stated that all relevant parties were invited to closed sessions. QITAF itself said the secrecy is managed by state legal authorities for national security reasons and that it does not control the committee's hearing composition.
The ongoing confidentiality raises concerns about accountability and public oversight, complicating efforts to privatize QITAF and address environmental and operational issues highlighted by auditors and civil society.
