Zeev Kariv, board chairman of Vered, told a ministerial economic committee earlier that the firm’s difficulties began after 1965 when it expanded from water development into diversified engineering projects that required a heavy capital outlay for equipment. Its work for the Iranian government, estimated to cost $14 million, has now run up to $30 million with six months to go before completion. Iran has agreed to pay $26 million. The project in Peru also experienced a heavy cost overrun which was attributed to the change of government in that country.
The Netivei Neft case generated sensational articles in the press here and abroad but the inquiry that opened today attracted little public attention. The courtroom used by the committee was empty except for the principals in the case and journalists. Attorney General Meir Shamgar formally spoke for the government. The committee granted his request to withhold the identity of other partners in the firm for state security reasons. David Niv, the oil geologist who brought the charges that led to the inquiry, repeated his complaint. The inquiry is expected to last at least six weeks.
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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.
