Israeli PM a tool of oligarchs?

JERUSALEM – Acting Israeli Prime Minister Ehud Olmert and his Kadima Party are tools for a select group of organizations and individuals who control most of Israel's economy and media, according to several top economists and commentators here.

The observations follow an article in Forbes Israel Magazine that stated 12 business groups control more than 60 percent of Israel's economy, making it among the most concentrated in the world.

"Israel's economy is chock full of monopolies," Daniel Doron, director of the Israel Center for Social and Economic Progress, a pro-market think tank, told WorldNetDaily. "There is a 30 to 50 percent monopoly rate on everything Israelis consume – clothes, water, gas, electricity. Israelis are being bilked by a cabal of private businessmen and political leaders who have created this monopolistic structure. And Ehud Olmert is their best friend. He has been in bed with them for years."

The Forbes article earlier this month stated 12 groups have a disproportionately large amount of control over Israel's economy and the country's media through ownership of many of Israel's top banks and holding organizations that own media, utility and other companies.

TRENDING: Trump has a pathway to victory in appeal of Facebook ban

The magazine lists the groups, which include private citizens – Sami Ofer, Nochi Dankner, Shari Arison, the Cerberus-Gabriel consortium, Charles Bronfman, Yitzchak Tshuva, the Saban group, Lev Leviev, Matthew Bronfman, Tzadik Bino, the Borovich family and Eliezer Fishman.

Forbes contends the groups constructed their empires, which own about 60 percent of the aggregate market value of all Israeli public companies, using organizational methods that were abolished in the Western world in the 1930s.

The groups reportedly achieved tight economic ownership by structuring their companies in pyramid-style, putting top holding companies in charge of smaller companies that all are beholden ultimately to the 12 groups. The U.S. largely eliminated this style of privatized influence nearly 80 years ago through a series of restrictions on ownership and the implementation of double taxation of dividends paid by a company to its parent organization.

Each of the 12 groups gave campaign contributions to Olmert for his bid for prime minister last month, according to a list obtained by WND.

WND also has learned most of the 12 groups have contributed to foundations associated with Olmert and top Kadima advisor and former Israeli Prime Minister Shimon Peres, including the Peres Center for Peace and Olmert's One Jerusalem Fund.

Doron pointed out that prior to the March 28 elections here, two of Israel's most prominent economic columnists charged Olmert is submissive to the select groups. The columnists are known for their support of Olmert's plan to withdraw from the West Bank.

"On the eve of elections two of Israel's most responsible commentators wrote sensational articles accusing Kadima of being a party put together by the Oligarchs who control most of Israel's economy," said Doron.

"In any normal democratic country, these articles would have ignited a firestorm. Israel has three major TV channels, several radio stations plus a number of very competitive newspapers. The media did not even report or comment on the two authors' unusual criticism so most people were not aware of its existence. The media in Israel is not independent. It is owned by parent companies who are part of this cabal. This is part of the major problem in Israel."

Doron was referring to commentary by senior Haaretz columnist Ari Shavit and by Guy Rolnik, economic editor of Haaretz and The Marker, a top Israeli economic magazine and Haaretz supplement.

RELATED: U.S. partner might deny Israel's right to exist

Shavot's column, "The Country Is In Our Hands," was written as an imaginary secret memo submitted by Olmert to the groups that allegedly control most assets in Israel:

"Dear Wealthy Families,

Advertisement - story continues below

"... For the last 15 years my colleagues and I have been laboring faithfully and devotedly to assure your conquest over the democratic systems of said country. Over the years, we reached outstanding achievements. We have managed to create a society devoid of opposition for you, one without any parties worthy of note, without labor unions worth the name, without sniping journalists. We thus achieved almost perfect control over the Israeli consciousness, and over the government and political establishment.

"We had to form a political body that will serve [the oligarchy] faithfully, and we had to head it by one of our own… [Ehud Olmert] is A1... his door is always open … there is not a deal that he won't cut … we have gained access that is comparable only to what the rich have in Latin America. …"

"The new ruling party will be a most useful instrument for gaining our objectives … it will enable us to have total control of the Israeli government, of the police, the state prosecutor's office, the treasury (and the various regulatory bodies). … Our 20th-century dysfunctional democracy will be replaced by a centralized oligarchy. …"

Rolnik also made what Doron called dramatic charges. In his piece "Kadima [onwards] – For The Benefit Of Our Rich Friends," Rolnik, writing from the perspective of one of the 12 group members, stated:

"We know Ehud Olmert … he can be relied upon, Nochi (Dankner) relies on him, Mossie (Wertheimer) relies on him, Eitan (Raff) relies on him, [the oligarchs] all rely on him – he will not disappoint them…"

Olmert's Kadima Party won last month's parliamentary elections. He is forming a government coalition to push through his announced plan to withdrawal from most of the West Bank, which borders Israel's major population centers and is within rocket firing range of Jerusalem, Tel Aviv and the country's international airport.

As WND reported, Olmert recently has been implicated in multiple corruption and bribery scandals.

Israeli Comptroller Micha Lindenstrauss is investigating a series of political appointments made by Olmert while he served as minister of Industry and Trade under Prime Minister Ariel Sharon's administration. Olmert was minister from 2003 until 2005. He is charged with making appointments in exchange for political and business favors.

Another investigation tied to Olmert involves political appointments allegedly coordinated with Ariel Sharon's son and former minister, Omri Sharon.

The state was asked to investigate the younger Sharon following a recent television report airing excerpts from Omri's diary concerning a large number of political appointments allegedly aimed at shoring up support for his father while he was prime minister.

Among Olmert-tied entries, Omri Sharon in the diary, which has been authenticated and which Omri has admitted belongs to him, reminded himself to "meet with Ehud (Olmert) about (Likud Central Committee member) Yigal Yosef," as well as with a top Olmert adviser on the same subject.

Yosef was part of Ariel Sharon's then-ruling Likud Party. Omri states Yosef's vote was needed in 2004 to approve Sharon's request to bring the opposition Labor Party into his coalition. Yosef voted in favor of Labor joining the government and eventually was given a top job in Olmert's Industry Ministry.

Related offer:

Definitive work on Mideast – available only here!

Previous stories:

12 groups 'control 60% of Israel'

Olmert corruption report delayed for elections?