A recent scandal involving the Israeli company Ofer Brothers Group that allegedly traded with Iran is increasing political tensions in Israel — a country prohibiting its companies from investing in international firms having trade-ties with Iran.
On Tuesday, the Knesset Economic Affairs Committee discussing the Ofer issue was adjourned shortly after it started when chairman Carmel Shama-Hacohen received a note from an aide. The note, said Shama-Hacohen, did not come from a political or business figure.
The adjournment exacerbated a controversy already exciting public opinion and the Israeli media. The Ofer, one of Israel’s wealthiest families, is now targeted after the US State Department registered Ofer Brothers under its list of sanctions violators last week.
Tanker Pacific, a company owned by Ofer Brothers, is accused of selling a tanker to the Islamic Republic of Iran Shipping Lines — Iran’s national shipping company blacklisted by the UN Security Council — for $8.65 million through other companies that acted as a "front".
The US move triggered a chain of accusations and denials by the parties involved. Ofer Brothers first denied the allegations, saying it knew nothing of the sale. The US then affirmed the transaction in a harsher tone.
"We believe that Tanker Pacific and Ofer Brothers Group failed to exercise due diligence and did not heed publicly available and easily obtainable information that would have indicated that they were dealing with [Iranian Shipping Lines]," a State Department statement declared.
Ofer then moved to try and sway the media into believing they operated with the knowledge of the Israeli government, but the Israeli government vehemently denied it: "The American decision relates to a private company, and the handling of the issue is between the company and the US authorities,” said the spokesman for the Israeli Foreign Ministry.
The Ofer family then tried to calm tensions with the government in a press statement, saying that “disclosures by alleged close associates of the family were not made with the family's agreement and are certainly unacceptable to us, and we are sorry they were quoted as they were.”
Yossi Melman, writing in Haaretz, followed the story closely. He saw this attempt on the part of the Ofer to calm tensions with the government as the only rational response, saying their attempts at bringing up their possible past cooperation with Israeli intelligence for immunity was a foolish move.
"Even if the Ofer family does assist Israeli security organisations from time to time, this gives them no license to break Israeli law,” Melman wrote Wednesday.
His article was entitled, "Israel's moral stand on Iran suffered a fatal blow," wherein he clearly stated that the whole affair was extremely detrimental to Israel, and in particular Israeli diplomacy, since Netanyahu may now have trouble asking other countries to prevent their companies from trading with Iran, invoking the double standards of the Ofer case.
On the other hand, Iran denied any dealing with Israel this week. The chairman of its Chamber of Commerce, Industries and Mines (ICCIM), Mohammad Nahavandian, said" "The news regarding the activities of Zionist firms in regard to Iran is a new game which has surfaced in reaction to other nations welcoming establishing economic ties with Iran.”
Recent sanctions against Iran on 24 May targeted Ofer Brothers.
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