Adani Group’s Haifa Port faces turmoil as CEO alleges corruption before exit
Adani Group’s Haifa Port faces turmoil as CEO alleges corruption before exit
CEO Udi Sharon alleges his removal was retaliation for blocking a deal to benefit Histadrut’s Arnon Bar-David’s son.
Udi Sharon, CEO of the Haifa Port, was recently summoned to a hearing prior to his dismissal. The move was surprising, especially since Sharon had claimed shortly before that he had received a bonus for his performance in 2023. Calcalist reveals for the first time Sharon's account of the reasons behind his potential dismissal.
According to Sharon, the true reason for his dismissal lies behind serious allegations he made about suspected corruption involving the port's chairman, Ron Malka. Sharon claimed that he had refused Malka's request to replace the port's insurance agent with someone who lacked experience in the complex field of port insurance. Sharon alleged that the agent Malka wanted to appoint was the son of Histadrut (The General Organization of Workers in Israel) Chairman Arnon Bar-David, with whom Malka is reportedly close.
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Histadrut Chairman Arnon Bar David (left) and Haifa Port CEO Ron Malka.
(Photo: Verthig Venitien and Reuters)
Last Friday, a hearing was held for Sharon, who was represented by attorney Boaz Ben Zur. The Haifa Port Board of Directors decided in mid-August to remove Sharon as CEO, citing the chairman's claim that the port's financial results had declined amid increased competition with rival ports. The removal was reportedly spearheaded by Adani Group, the Indian company for which Malka serves as the port's chairman.
The Port of Haifa responded to the allegations, stating: "These claims are baseless and unfounded, raised as part of the process to review the continued employment of the CEO. In essence, the port only sought to initiate a competitive bidding process for insurance services, a move that ultimately led to a significant reduction in insurance costs."
The Port of Haifa is owned by a consortium led by India's Adani Group, which paid around $1.15 billion for it last year. Israel has been selling its state-owned ports and building new private docks in recent years in an effort to bring down costs and cut above-average waiting times for vessels to unload. China's Shanghai International Port Group (SIPG) opened a new port across the bay in Haifa in 2022.
