Northern Electricity Distribution Company Public Shareholding Limited (Palestine)

· The State Audit and Administrative Control Bureau (SAACB) conducted an audit of the operations of Northern Electricity Distribution Company Public Shareholding Limited, and the following was recorded:

- An increase in the average time required to carry out activities related to connecting new customer subscriptions during 2018, compared with previous years..!

- An increase in problems of power outages and problems with electricity meters in the company's concession areas!

- The percentage of loss from electricity purchases is high, at approximately (18%)!

- The correct sales were not reported to the Income Tax Department for 2017, and the company's tax file for 2016-2017 was not closed with the Major Taxpayers Department of Income Tax in Ramallah.!

- The company's General Assembly did not comply with amending the internal regulations and the Articles of Association, and rectifying the company's legal status.

- The Board of Directors appointed advisors to the board with monthly salaries and assigned them executive tasks in the company, contrary to the internal regulations, which leads the company to incur unjustified expenses in the presence of administrative, financial and technical directors who are qualified and have extensive experience in the field.!

- The Board of Directors violated the Companies Law and the company's internal regulations regarding the monthly remuneration of the chairman and members of the Board of Directors.

- Termination of employees who reached 60 years of age, contrary to the internal regulations and the Labor Law, since there is no legal provision that permits the company to do so.

- The company did not adhere to the official hiring procedures of announcement and interviews, as most appointments were made by direct appointment.!

- Appointment to the position of Jenin Branch Manager on 3-10-2018 pursuant to a special employment contract with a salary of 9,500 شيكل and not according to the scale, with the approval of the Board of Directors; noting that the employee is a former Board member for Jenin Municipality, and the employee's university qualification does not match the approved job description for a Branch Manager.!

- The Bureau also conducted an audit of a set of items submitted within a complaint (related to the existence of financial and administrative violations in Northern Electricity Company), and the following was recorded:

- The established system for paying fuel to employees when they use their personal vehicles was not adhered to.

- Appointment to a proposed position before the organizational structure was amended and before it was approved by the Board of Directors.!

- Purchasing private cars for a group of employees (technicians and administrative staff), and paying for these cars through Northern Electricity Distribution Company, which amounted to 2,088,313 شيكل, then selling these cars to the employees by official sales invoices where the sales value amounted to 1,465,417 شيكل, including value added tax, with the car price to be paid in installments over 36 months by the employee where the installment is deducted from the salary, and the depreciation value for the cars sold to employees was 560,563 شيكل.!

- Appointing the company's General Manager from a member of the Board of Directors directly to General Manager of the company, without an interview or competition and without announcing the position..!!

- Appointing the Jenin Branch Manager despite his noncompliance with the job description for the position he occupies, and considering that he had held the position of advisor to the Board of Directors.!

· The company's response was largely positive, as it acknowledged most of the violations and observations stated in the report), however we do not know whether the errors were corrected and whether those responsible for the financial, administrative and technical violations in this public limited company mentioned above were held accountable, which had شارحه لنفسها..!

· On 7-11-2020