The State Comptroller published today (29.1.25) a report on Europe Asia Pipeline Company (EAPC) – financial audit and various aspects of its activities and additional confidential defense reports
State Comptroller Matanyahu Englman: "The Europe Asia Pipeline has strategic importance for the State of Israel. Israeli governments were not clever enough to properly prepare for times of emergency and put off making decisions. This being the case, during the Swords of Iron War, and also during Operation Guardian of the Walls, the State of Israel found itself on the brink of a crisis in its emergency fuel sector.
EAPC did not properly prepare itself for preventing damage to the environment. It is inconceivable that leakage events were not taken into account when paying certain salary components to senior employees.
Furthermore, we found substantive defects in the company's engagements with the external legal advisor, the internal auditor and the company's spokespersons".
Cyber Defense of Remotely Piloted Aircrafts (RPAs)
From September 2022 to July 2023, the Office of the State Comptroller examined the IDF's cyber defense of the Zik and Eitan RPA systems. The audit was conducted within the IDF; at the Air Force – at the Digital & Communications Department, the RPA Weapon Systems Department, the Technological Headquarters, and relevant RPA squadrons; at the Computer and IT Directorate – within the Defense Division at the Ministry of Defense – at the UAV (unmanned aerial vehicle) Directorate of the Directorate of Defense Research & Development (DDR&D – MAFAT); and at Israel Aerospace Industries. Meetings were also held with Elbit Systems, although it is not an audited body.
Pursuant to Section 17 (a) of the State Comptroller Law, 5718-1958 [Consolidated Version], and while paying attention to necessity, the sub-committee of the Knesset State Control Committee resolved that the audit report in the matter not be laid on the Knesset table and not be published.
The IDF's Preparedness and Readiness for Warfare in the Electromagnetic Spectrum Domain
From December 2022 to July 2023, the Office of the State Comptroller examined the IDF's preparedness and readiness for warfare in the electromagnetic spectrum domain. The audit assessed the following topics: The reference threat and force buildup, conceptual and doctrinal foundations, intelligence, and operational plans. The audit was conducted primarily within the IDF – at the Computer Service Directorate – at the Spectrum and Cyber Defense Division; the Ground Forces Command, the Navy, the Operations Directorate; the Southern Command; the Northern Command; the Planning and Multidomain Force Buildup Directorate; the Intelligence Directorate; the Air and Space Force; the Depth Command; the Multidimensional Unit; at the Ministry of Defense – the Directorate of Defense Research & Development; the Ministry of Communications; the National Cyber Directorate; the Israel Airports Authority; and Rafael Advanced Defense Systems Ltd.
Pursuant to Section 17 (a) of the State Comptroller Law, 5718-1958 [Consolidated Version], and while paying attention to necessity, the sub-committee of the Knesset State Control Committee resolved that the audit report in the matter not be laid on the Knesset table and not be published.
Europe Asia Pipeline Company (EAPC) – Financial Audit and Various Aspects of its Activity
State Comptroller Matanyahu Englman determines that the Prime Minister's Office should hold a discussion at the government to decide and adopt the conclusions of the inter-ministerial team regarding the expansion of activity at the Eilat Port, and in particular in light of the state of emergency in Israel against the background of the Swords of Iron War and the accompanying risks from all arenas. The Comptroller also said that the Ministries of Finance (which regulates the company) and Energy, and the Government Companies Authority, in collaboration with the Ministry of Environmental Protection, should formulate an inclusive government position regarding the company's future in light of the expected reduction in the use of fuels, while balancing the environmental effects against the energy sector's needs in times of routine and emergency, and in particular against the background of the fear of harming the energy sector as expressed in the Swords of Iron War and the Guardian of the Walls Operation.
It is further recommended that the Prime Minister, together with the Minister of Energy and the Minister of Finance, and in collaboration with the Government Companies Authority and the minister in charge of it, evaluate the Ministry of Energy's position regarding the need to regulate EAPC's activities under the sectoral minister and ministry – the Minister of Energy and the Ministry of Energy, in light of the company's importance in the energy sector and the crossroads at which the energy sector currently stands – transitioning from fossil fuels to renewable energy – and if necessary, initiate legislative amendments in order to address the matter.
It is further recommended that the Ministries of Finance (which regulates the company) and Energy, and the Government Companies Authority, in collaboration with the Ministry of Environmental Protection, formulate an inclusive government position regarding the company's future in light of the expected reduction in the use of fuels, while balancing the environmental effects against the energy sector's needs in times of routine and emergency, and in particular against the background of the fear of harming the energy sector as expressed in the Swords of Iron War and the Guardian of the Walls Operation.
