Water industry sources have told “Globes” that governmental parties trying to push through the sale of Mekorot National Water Company’s desalinization facility to private investors at a negligible price were behind the wave of reports about the alleged collapse of Mekorot subsidiary Mekorot Initiation. The sources alleged that the facility could be made operationally profitable with a relatively small investment.
The sources stated, “We are concerned that the write-off is designed to justify the sale of assets at a negligible price to private parties. A year from now, after the repairs of the facility are completed, we will suddenly see that it is making a profit.”
The sources were referring to a decision by the Mekorot board of directors to write off the company’s entire investment in its Mekorot Initiation subsidiary. The sources added, “This measures stems from the attitude that as long as the facility is losing money, the asset will be written off, but as soon as the operational defects are corrected, the entire asset will be returned – and the repairs can be completed in less than a year.”