Foreword
This report is the third section of Annual Report 70. Its first section (70A) was published in March 2020 and its second section (70B) was published in May 2020. This section deals, mainly, with the Defense Establishment, which takes action to strengthen the security of the State of Israel, and the remainder focuses on Government Ministries and Corporations.
The confidentiality requirements related to the chapters in this report have been reviewed by the Knesset’s State Control subcommittee, in accordance with paragraph 17 of the State Comptroller Law, 1958 [combined text]. The following is an overview of some topics that were examined:
The Cannon Array is a key component of the order of forces of the IDF's Artillery, and its main function is to assist the maneuvering forces. The audit on the subject of decision-making processes in the Defense Establishment on the subject of procuring a new cannon found a number of deficiencies in the strategic work of the IDF General Staff when examining the issue of acquiring new cannons as well as deficiencies in the presentation of the information to the IDF Chief of the General Staff, the Minister of Defense and the State Security Cabinet, which led to decision making on the basis of incomplete information. In view of the deficiencies found by the audit, the Defense Establishment must be rigorous in conducting organized and fundamental strategic work when examining acquisition of significant and highly expensive fighting equipment, and in presenting accurate and complete information to decision makers. The aim in doing so is to help make optimal decisions and to ensure that the IDF procures fighting equipment that will lead to the required achievements during combat and that will optimally utilize the Defense Establishment's limited resources.
During the round of fighting of recent years, hundreds of missiles and rockets were launched daily towards Israel. According to the reference threat, this number will increase, and tens of thousands of missiles and rockets will be launched against Israel during combat. In December 2016, the Office of the State Comptroller published a report on the Preparedness to defend the Home Front against the threat of Missiles and Rockets, which raised deficiencies that could potentially increase the threat to the population during combat. Particularly critical deficiencies were found in settlements along the northern border. In the follow-up audit, conducted in 2019, our Office examined the rectification of the main deficiencies raised in the previous audit and found that authorities of the bodies responsible for managing the home front have not yet been regulated, and that the State Security Cabinet's decision to formulate a multiyear plan for managing the home front has not yet been implemented. It was also found that significant gaps in protection remain: in 2018, for example, around 2.6 residents of Israel (28%) did not have basic protection means near their homes, and 2,494 of 12,601 public shelters (20%) were inadequate. In addition, it was found that there had been an improvement in detection and warning capabilities and in the preparedness of to evacuate population, but the plans for evacuating population have not yet been completed and some are not viable.
Our Office also examined the preparedness of the Ministry of Defense and the IDF to implement the Memorandum of Understanding (MOU) with the United States for the years 2019–2028 on the matter of Defense Aid.
The amount the defense aid and the American support of the joint missile defense plans for the years 2019–2028, is 3.8 billion dollars a year (13.8 billion NIS).). The MOU contributes significantly to the Defense Establishments’ certainty regarding the resources available to it, improves its multiyear planning and has a strategic impact on the relations between Israel and the US. Nevertheless, a significant reduction in the NIS sources available to the Defense Establishment is expected, especially in 2025. The audit found that the Ministry of Defense (MOD) did not analyze the possible implications of this decrease on the manufacturing independence in Israel and on the IDF’s strengthening and the possible impact on the State’s security. The MOD, the Ministry of Finance and the Ministry of Economics and Industry should formulate a plan, if required, for the preparedness as a result of implementing the MOU.
In the region of Judea and Samaria, where Israel maintains security and civil authorities, the IDF carries out operational activity for defense and security purposes which include, inter alia, the following actions: the construction of various military facilities, opening or closing of traffic arteries, and placement of security and protective means along the roads used by the IDF and the public. The examination of aspects of Safety and Responsibility in relation to road maintenance in the Judea and Samaria region found deficiencies due to the lack of an authority responsible for maintaining roads infrastructures connecting to IDF bases and facilities that serve the general public, even though the matter may endanger road users. The existing tension between the need to ensure operational needs the need to protect the safety of road users in the public space, requires the use of a set of procedures and instructions and tools to coordinate between the various needs, while maintaining checks and balances. The rectification of the deficiencies raised in this report will ensure the public order, security and the safety of road users while ensuring better coordination between all military and civil authorities responsible for security and also obligated to maintain the safety of road users.
Foreign entities invest in the Israeli economy in various fields, and our Office examined the foreign companies' involvement in the construction and operation of vital national infrastructure ventures. The cumulative balance of foreign investments in Israel on 31.12.2017 was estimated to be approximately 129 billion dollars, and the annual sum of foreign investments in Israel in 2017 was about 18 billion dollars. Alongside the economic benefits of foreign investments and their contribution to the development of the Israeli economy, they might have also negative implications. Foreign entities' control over strategic assets could impact a wide variety of national interests, including national security, strategic assets and the competitive capacity in the international arena. The foreign economic involvement in national infrastructure project and in fields having broad economic or national impact must be examined in the future according to national security and business considerations. The Israeli Government must handle this issue, whether through the National Security Council or through any other body it designates.
The Tevel project for upgrading the computing systems in the National Insurance Institute is one of the largest, most complex and expensive computer projects executed in the public sector in recent years. The project's purpose is to improve the services provided to the public through implementation of a central data infrastructure that will provide a comprehensive view of each insured, while focusing on the full exercise of his rights. The project was launched in 2010 and was scheduled to continue until 2020. The audit found that over the years, difficulties in managing the project arose and many delays ensued. For example, out of 31 systems in the core content of the project, over the ten years since its launch, only five systems have been implemented, and even these were only partially implemented, compared to the original plan. Despite the partial execution of the project’s elements, the budget utilized by the audit completion date exceeded the original planned budget by about 58%. The progress in the project is of high importance both because of the need to improve the service to insured and because of additional aspects such as prevention of errors in the exercise of the insured's rights and savings in erroneous payments. The great gaps between the project’s implementation plans and the way the systems are being implemented are compelling the National Insurance Institute to continue using old systems in many spheres of activity and do not enable it to upgrade its service to the public in additional benefit categories. The National Insurance Institute should thoroughly examine the project assessment and planning processes and maintain close monitoring of the progress and its milestones at every stage to prevent further delays in implementation.
The audit on the subject of the project of the construction of a new building for the Prime Minister's office his residence, which has been on the agenda of the government of Israel for abou 25 years alternately, found that on the audit completion date, the project had been stopped, and that its planning had yet to be completed. Needless to say, the construction of the structure has yet to start and its construction in an alternate location is being considered. In 2009, the estimated cost of the project was 650 million NIS, and in 2018 – 1.2 billion NIS, because of, among other reasons, protection requirements. This is a complex and sensitive project, combining design aspects typical of government building projects, security aspects and requirements related to ceremonies and presentations. It would be appropriate for this report to be the basis for drawing conclusions, regarding the continuation of the project management in the coming years, and for the implementation of future complex projects. For this purpose, it would be right to pay attention to a number of weaknesses in the project management, including making decisions without preliminary checking of all the data and without an updated risk assessment; great fluctuation in decision making and defining the project’s content; lack of optimal communication between the parties involved in the project; and lack of preliminary activity and initiative to remove obstacles.
Preparation of the report required a great effort on the part of the employees of the Office of the State Comptroller, who conducted it professionally, with thoroughness, fairness and without bias, and who fulfil their public role with a real sense of mission. They have my heartfelt gratitude.
It has not escaped my notice that audited bodies do execute positive actions and these main actions were expressed in the audit chapters. Alongside, it is the obligation of these bodies to rectify the deficiencies raised in the report in order to strengthen the security of the State and its residents and improve the services given to the public in Israel.
Matanyahu Englman
State Comptroller
and Ombudsman
Jerusalem, August 2020
Table of Contents
Foreword
The Defense Establishment
National-Strategic Spheres of Activity
1. Preparedness to Defend the Home Front against the Threat of Missiles and Rockets (Physical protection, Warnings and Population Evacuation) – Follow-up Audit
2. Preparedness to Defend Essential Facilities against Missiles, Rockets and Other Aerial Threats
3. Preparedness of the Ministry of Defense and the IDF to Implement the Memorandum of Understandings with the United States for the years 2019–2028 on the Matter of Defense Aid
4. Foreign Companies’ Involvement in the Construction and Operation of Vital National Infrastructure Ventures
Procurement of Key Fighting Equipment
5. Decision-Making Processes in the Defense Establishment on the Subject of Procuring a New Cannon
Judea and Samaria Region
6. Staff Officers in the Civil Administration in the Judea and Samaria Region
7. Aspects of Safety and Responsibility in Relation to Road Maintenance in the Judea and Samaria Region
Organizational Issues
8. Classified Information – Securing it in Archives and Preventing Its Publication
9. Master Plan for Construction in the Mossad
Government Ministries
10. The Project of the Construction of a New Building for the Prime Minister’s Office and Residence
Ministry of Finance | Israel Tax Authority
11. Tax Authority’s Supervision of the Land Border Crossings
Ministry of the Interior | Population and Immigration Authority
12. Control over the Border Crossings
State Institutions, Government Companies and Corporations
13. Tevel Project for Upgrading the Computing Systems in the National Insurance Institute