Amit also testified that the prototype of a speedboat that Autocar intended to manufacture but later decided not to, was presented as a gift to Kibbutz Ginossar on Lake Kinnereth, the Deputy Premier’s home. Amit appeared at an unusual open session of the economic committee which is investigating charges of alleged bribery, tax evasion and fraudulent bookkeeping by Autocar. Testimony was also taken from Menachem Margaliot, Autocar’s former chief representative in Jerusalem who said that an automobile was sold at one third less than list price to Yaacov Arnon, former director general of the Finance Ministry.
OTHER PUBLIC FIGURES NAMED
Two Maj. Generals, Zvi Zamir and Ariel Sharon were also named among public figures, including government officials yet to be named, who received cars at large discounts. Arnon, interviewed on the radio today, claimed that he did not know the market price of the car and thought he was getting a reduction of only a “few hundred (IL) pounds.” According to Margaliot, more than two thousand IL pounds ($600) were shaved off the list price of IL 16,000 ($4,600 at the then prevailing rate of exchange) for the Triumph 1500 car assembled at Autocar’s plant.
But Margaliot insisted that the discount was offered for purely commercial reasons. He said that if Arnon drove the car, other government employes and visitors to the Finance Ministry might follow his example. He said a reduction was given a female secretary of the company as well.
Amit resigned from Autocar after the Histadrut-owned Koor Co. which he heads, sold its shares because of inefficient management on the part of Autocar’s managing director, Itzhak Shubinsky. He said there was no way to break the power of Shubinsky who owned 20 percent of the company’s shares and allegedly enjoyed the backing of the British parent firm. According to Amit, it was Shubinsky who told the board of directors that Sapir wanted a $24,000 contribution for the educational center. The directors approved half that amount but it turned out later that the books carried the full amount as commission paid to Shmuel Cohen, director of Alonim. There was no comment today from Sapir.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
