Comptroller to examine operations of Barak's old companies

State Comptroller Micha Lindenstrauss said yesterday that he will examine the operations of two consulting firms formerly owned by Defense Minister Ehud Barak. The move follows a Haaretz report earlier this month, which revealed that the companies received payments exceeding NIS 6 million after Barak formally rescinded control, upon taking office, and gave his shares to his three daughters.

Barak started the first international consulting company, Ehud Barak Limited, in 2002 - a year after losing the general elections to Ariel Sharon. After winning the June 2007 primary elections in the Labor party, Barak transferred all of his shares in the company to his three daughters and joined Ehud Olmert's government as defense minister.

According to information that has reached Haaretz, between June 2007 and 2009 the company received payments of over NIS 6 million. A subsidiary of the company, Kardo Business Development Limited - half of the shares of which are held by Barak's former brother-in-law Doron Cohen - has received over NIS 1.5 million.

The minister would not disclose who transferred the money to the companies or for what services they were received. A statement on his behalf said only that "Since the day he joined the government, minister Barak has maintained his rights and duties in complete transparency to the relevant authorities."

Lindenstrauss took up the investigation following a request by the State Control Committee. "All of us, as public officials, are under scrutiny and need to maintain transparency," said committee chairman MK Yoel Hasson (Kadima) at a meeting with Lindenstrauss. "Over the years mechanisms monitoring former public figures who retire from public life have been created."

"The committee met following the Haaretz report on an alleged transfer of funds to companies formerly owned by Defense Minister Ehud Barak, even after he took up his ministerial office," Hasson added. "The state comptroller should investigate the matter in the most objective manner possible."

Lindenstrauss said yesterday that "The comptroller's office today deals with 'cleaning out the stables,' and the nature of monitoring has thoroughly changed. The public has a right to know with maximum transparency what is happening in the public sector of the state." The comptroller said he expects the examination to be completed soon and the results to reach the public shortly.

Ehud Barak, Doron Cohen and anti-corruption organizations were invited to the meeting, but did not attend.