State Comptroller Matanyahu Englman:
On the cost of living: "The State of Israel is characterized by a high level of market concentration in the food sector. The inaction of government bodies on the issue of market concentration in the food industry is unacceptable. This has consequences for the cost of living. The past year was marked by price increases, and Israel's citizens are suffering from the cost of living. The prime minister and the other ministers must fight the cost of living."
On the taxation of digital currencies: "The tax potential of cryptocurrencies could reach NIS 3 billion. However, the rate of reporting to the Israel Tax Authority is negligible – 500 out of a minimum of 200,000 cryptocurrency holders. Particularly given the ongoing war and the considerable costs to the economy, the Minister of Finance and the Tax Authority must act to collect tax on cryptocurrencies, before raising taxes on Israel's citizens."
On the Ministry of Regional Cooperation: "On one hand, most of the positions at the ministry are intended for political appointments in the office of the minister and the director general, and on the other hand, most of the ministry's investments in projects have gone to waste. The prime minister must examine the necessity of the ministry."
On the supervision of water desalination operators: "It is inconceivable that in the State of Israel in 2024, after incidents of turbidity and bird droppings in the water, the operators are not fined by the Ministry of Health."
On the electricity sector: "The government of Israel is not sufficiently preparing for potential damage to the economy due to delays in the construction of production units and storage facilities."
On toll roads: "There is no logic in the cumbersome system in which Israel's citizens have to pay 3 toll road operators separately. This leads to the accumulation of needless debts and interest charges."
Table of contents
1. Addressing market concentration and monopolies in the food and consumer products industry
2. Taxation of digital currencies
3. Aspects of the Ministry of Regional Cooperation's activity
4. Regulation and supervision of seawater desalination facilities
5. Development of the electricity sector until the year 2030
6. The operation of toll roads
7. The taxi industry in Israel
8. Making public transportation accessible to people with disabilities – follow-up audit
9. Publication and management of framework tenders in local authorities and municipal corporations
10. Advancing master planning and detailed planning in communities in the non-Jewish sector in northern Israel
11. Waiting time to receive specialist medical services
12. The Ministry of Justice's handling of insolvency proceedings and financial rehabilitation
Addressing market concentration and monopolies in the food and consumer products industry
State Comptroller Matanyahu Englman states that the prime minister and the ministers of finance, economy, health, agriculture, and other ministers (environmental protection, energy and infrastructure, welfare and social affairs, religious services, construction and housing, the Negev, Galilee and national resilience, communications, tourism, and aliyah and integration) who take part in the work of the Ministerial Committee on Fighting the Cost of Living must monitor the implementation of the reforms and act to complete and update them if necessary and to ensure that the government's actions to reduce the cost of living are coordinated and up-to-date, in order to optimally address the cost of living and rising food prices.
Taxation of digital currencies
State Comptroller Matanyahu Englman recommends that the Israel Tax Authority work in cooperation with the professional offices, industry players and parallel bodies abroad to formulate and publish clear taxation rules, as published recently in the European Union, the United Kingdom and elsewhere. In addition, it is recommended that the minister of finance, in coordination with the Tax Authority, complete the preparation of a draft bill that advances the regulation of taxation, as stipulated in Government Decision 204. Clarity on taxation can improve public confidence in the Tax Authority, chart the way to allow the Israeli economy to grow in the cryptocurrency market, and enable the State of Israel to maintain its standing as a technological power. It would also enable Israel to benefit from the fruits of growth, increased reporting rates and fulfilling the tax collection potential due to income from cryptocurrency activity.
Aspects of the Ministry of Regional Cooperation's activity
State Comptroller Matanyahu Englman recommends that the prime minister and the minister of regional cooperation examine the necessity of the Ministry of Regional Cooperation as an independent ministry, given the findings of this audit report. If it is found that the Ministry of Regional Cooperation's activity as an independent ministry is indeed essential, then it is necessary to regulate its areas of responsibility and powers and to formulate a strategic plan as soon as possible that includes tasks and objectives for its activity, and to act to implement this plan.
Regulation and supervision of seawater desalination facilities
State Comptroller Matanyahu Englman states that the Ministry of Health, the Water Authority, the Accountant General in the Ministry of Finance and the Desalination Administration must act to rectify the deficiencies raised in this report. The comptroller also recommends that the Ministry of Health, the Water Authority, the Accountant General and the Desalination Administration conduct a systematic process of learning lessons from the findings noted in this report, and in accordance with the experience accumulated so far from the engagements with desalination operators. This should be done for various aspects, such as enforcement mechanisms, agreed compensation amounts, incentives, the necessary frequency of tests, contractual metrics and threshold values, and compliance with reporting obligations. The conclusions from a systematic lessons learned process can serve as an input for decisions on the terms of transactions with the desalination operators that will operate the desalination facilities after the end of the current concession period, and regarding additional desalination facilities that will be established in the future, including their regulation and supervision.
Development of the electricity sector until the year 2030
State Comptroller Matanyahu Englman recommends that the minister of energy, who has overall responsibility for developing the electricity sector, act to make the decisions needed in the electricity sector in a timely manner, and ensure the rectification of the deficiencies raised in this report in order to ensure the reliable, available, high-quality and efficient supply of electricity, as stated in the goals of the electricity sector.
The operation of toll roads
State Comptroller Matanyahu Englman recommends that the Ministry of Transport, Ministry of Finance and TransIsrael analyze the actual economic viability of roads constructed in the past using the PPP method compared to constructing roads with budgetary funding, in order to prepare appropriately for similar projects in the future; continuously monitor traffic, the movement of vehicles, travel speeds and other parameters and act to implement optimal solutions to this problem in as short a time as possible; complete the expansion of Highway 6 by the date determined; and examine the issue of high-occupancy vehicle lanes. The state comptroller further recommends that TransIsrael, the Ministry of Transport and the Ministry of Finance examine and consider the possibility of creating a uniform, consistent and non-fluctuating toll structure that is related to the type of vehicle, type of subscription and distance traveled, in order to avoid considerable differences in tolls and to provide travelers with transparency that will enable them to make more appropriate decisions, given that additional concessionaires are expected to join, with the implementation of the extension of Highway 6; act to formulate a differential toll structure for private vehicles that matches the level of service provided on Highway 6 in a way that reduces traffic levels; and reach agreement with the concessionaire before the completion of the expansion, so that when the expansion is completed, the differential toll structure that matches the level of service will be implemented.
The taxi industry in Israel
State Comptroller Matanyahu Englman recommends that the minister of finance and the minister of transport, in consultation with the joint price committee of the Ministry of Transport and the Ministry of Finance, update the base travel fares for taxis, while presenting a summary document that explains the economic model and the working assumptions that the travel fare update is derived from. In addition, the Ministry of Transport, the Ministry of Finance, the Tax Authority and the Israel Airports Authority must act, each in its area of authority and in cooperation as necessary, to rectify the deficiencies noted in this report. The comptroller emphasizes that implementing the recommendations included in the report's sections could improve regulatory processes in the taxi industry and bring about a rise in the level of service for citizens with respect to receiving more extensive ride services, a controlled and fair price, reducing air pollution from taxis and raising passengers' level of safety.
Making public transportation accessible to people with disabilities – follow-up audit
State Comptroller Matanyahu Englman recommends that the Ministry of Transport complete the preparation of the plan for public transportation accessibility until the year 2040. The state comptroller also recommends that the Ministry of Transport enshrine in legislation an obligation to make intercity bus lines accessible, especially as 26 years have passed since the legislation of the Equal Rights Law; and regulate the accessible taxi industry and ensure that accessible taxi services span all areas of the country equally, are available within the amount of time stipulated, and provide efficient service at the price of regular rides for people with disabilities, thus improving their ability to get around independently.
Publication and management of framework tenders in local authorities and municipal corporations
State Comptroller Matanyahu Englman recommends that the Ministry of Interior instruct the local authorities and the municipal corporations regarding how to manage framework tender processes in light of their unique characteristics, in order to ensure that the values of equality and fairness, which underlie the tender system, are upheld at the various stages of tenders, and examine the need to update the legislation that applies to local government with the necessary changes. The local authorities and the municipal corporations must ensure that framework tenders are published and managed in a way that maintains the principles of laws regarding tenders and operate efficiently, transparently and fairly, while providing equal opportunity to bidders, both in the selection of framework suppliers and in the distribution of projects among them.
Advancing master planning and detailed planning in communities in the non-Jewish sector in northern Israel
State Comptroller Matanyahu Englman states that the minister of interior must instruct the relevant planning authorities to find solutions to advance planning in the non-Jewish sector, focus activity on this important area, and monitor the advancement of housing solutions in the non-Jewish sector, along with increasing enforcement to prevent construction without a permit. The Planning Administration, the Ministry of Housing, the local authorities and the local planning and building committees must cooperate and make a concerted effort to find a solution to the barriers inhibiting planning in communities in the non-Jewish sector.
Waiting time for receiving specialist medical services
State Comptroller Matanyahu Englman stated that the minister of health and the Ministry of Health in cooperation with the HMOs must find solutions to ensure the availability of service for members, particularly in the periphery – equal service for all members, with an emphasis on seniors, and the optimal utilization of resources.
The Ministry of Justice's handling of insolvency proceedings and financial rehabilitation
State Comptroller Matanyahu Englman stated that as a whole, the report's findings require broad corrective action in a manner that enables effective activity to achieve the objectives stated in the Insolvency Law. The Ministry of Justice and the supervisor must act to rectify the deficiencies raised in this report.
The complete report