The Kohelet Policy Forum funded an organization called the Forum for National Challenges to the tune of 1.3 million shekels ($350,000) during the years 2020 and 2021. That organization was founded and is run by Amnon Merhav, a close associate of Economy and Industry Minister Nir Barkat. Merhav was recently appointed director-general of the Economy and Industry Ministry. People who know the organization well claim that Barkat was involved in its establishment, and that its role was to prepare policy papers for Barkat’s campaign to become Israeli leader after Benjamin Netanyahu was no longer prime minister. If this was, indeed, the main purpose of the organization, then it raises serious questions as to whether the law regulating political donations and funding to Knesset members and candidates was violated.

Shomrim asked both Barkat and the Kohelet Policy Forum for a response, but they declined to address specific questions and merely sent a general answer, printed in full at the end of this article.

Years-Long Ties with Barkat

The Kohelet Policy Forum, which defines itself as a research institution, has, over the years, not only published research and policy papers, but has forged ties with right-wing Israeli politicians, including Naftali Bennett, Ayelet Shaked, Sharren Haskel and Abir Kara. Kohelet’s relationship with Barkat, who makes no secret of his desire to replace Netanyahu as Likud leader when the time comes, has been going on for several years.

As published last month by Shomrim and TheMarker, Kohelet – which is one of the most influential organizations among the Israeli right, has many more tentacles in the form of NGOs and external organizations, which Kohelet either funds or cooperates with. Following the publication of that article, more information has reached Shomrim about these bodies, one of which is the Forum for National Challenges.

The Forum for National Challenges was established in 2020 by Amnon Merhav, a close associate of Barkat who served as CEO of Jerusalem Municipality when Barkat was mayor and who, as mentioned, has just been appointed director-general of the Economy and Industry Ministry. The Forum was active for two years until, against the backdrop of the political turmoil which led to early elections, it ceased activity last summer.

According to someone very familiar with the organization’s activity, it was established because Barkat wanted to prepare for ‘the day after’ Netanyahu in the Likud. “There was one stage when [Barkat] believed that Netanyahu would step down, and he saw himself as a candidate to replace him,” he explains. “In preparation for his leadership campaign and before he became prime minister, Barkat wanted the Forum to prepare policy papers that he could use.” The source adds that Barkat even participated in some of the meetings that the Forum held.

Throughout its two years of existence, the Forum for National Challenges confirms that it has produced five policy papers on varying subjects. One of them, which deals with health policy, was written by Dr. Ronit Segal Hirshberg, the former CEO of Rambam Hospital. “Some 18 months ago, I was a member of the Rambam board and then I took early retirement,” Segal Hirshberg told Shomrim. “Through an organization of female leaders in healthcare that I am a member of, I was in touch with Amnon Merhav and Nir Barkat, who set up the Forum for National Challenges. There were all kinds of groups that dealt with education, health, and other social issues that Nir wanted to promote. There were also meetings there with their people.”

Do you know who funds it all?

“Any questions about funding should be addressed to Amnon Merhav.”

According to a check by Shomrim, the Forum for National Challenges is not a registered association in Israel, nor is it a public-service company. Merhav is described as the CEO of the Forum, but it did not have a director-general, and it is far from clear who the members of the Forum were. Merhav explains that there were “broad and varied circles of consultation, including dozens of people in varying formations.”

The five policy papers published by the Forum all lack the usual ‘About Us’ section, which is acceptable practice for such publications. The ‘Acknowledgements’ page, however, is not missing. Thanks are extended to the Kohelet Policy Forum, its chairman Moshe Koppel and its director-general Meir Rubin for helping with their activities, and to Nir Barkat, whom Merhav describes on that page as “my personal mentor.” Merhav writes: “[Barkat] has provided me and my team of writers with wise, sound advice, with innovative and significant strategic approaches, which helped greater in formulating the policies laid out in this document.”

According to a check by Shomrim, the Forum for National Challenges is not a registered association in Israel, nor is it a public-service company. Merhav is described as the CEO of the Forum, but it did not have a director-general, and it is far from clear who the members of the Forum were. Merhav explains that there were “broad and varied circles of consultation, including dozens of people in varying formations.”

One Writer Didn’t Even Know it was Kohelet

According to Kohelet’s financial statements, as submitted to the Registrar of Associations, in 2020 and 2021, the Forum spent 1.3 million shekels ($350,000) on the Forum for National Challenges activities. Of that sum, 239,000 shekels ($64,000) appear as ‘Salaries and Accompanying Expenditure.’ Around 1 million shekels ($270,000) are allocated to what is described as ‘research costs.’ As mentioned, the Forum for National Challenges published a total of five long, detailed papers, but that is still a considerable sum to pay for policy papers. Was there any other kind of activity at all? Merhav and the Kohelet Policy Forum refused to answer any questions about financial matters.

Either way, a conversation with the author of one of these documents reveals that she was employed by Kohelet. For a different paper, payment to one of the co-authors was made through a third party. The author claims that he had no idea that Kohelet was involved. That paper, which deals with the economy and improving public services, was written jointly by two people: Ron Tzur, a former senior civil servant and the proprietor of a consultancy agency called Sparks, and Prof. Nissim Cohen, a public policy and administration researcher at the University of Haifa. Cohen told Shomrim that he opposed Kohelet’s positions and that he had no idea that funding for the research paper came from Kohelet since he was working directly with Sparks. He only found out that Kohelet funded the research when asked about it by Shomrim, he says.

Tzur explains that Merhav approached him when he and Cohen were already working on their paper. “Amnon Merhav approached me and spoke to me about the need for policies,” he says. “He saw the first draft of the document and research that Cohen and I initiated on the subject of Israel at times of economic growth. He basically asked to take the paper and copy it and that a group he was about to establish, called the Forum for National Challenges, would publish it. We agreed that payment would be made by the Kohelet Policy Forum. I am proud of our research and that it was published in the framework of Kohelet, which is a legitimate and worthy research institution.”

According to someone very familiar with the organization’s activity, it was established because Barkat wanted to prepare for ‘the day after’ Netanyahu in the Likud. “There was one stage when [Barkat] believed that Netanyahu would step down, and he saw himself as a candidate to replace him,” he explains.

The Money Question

Barkat and Kohelet have a history of working together within external organizations. In May 2019, for example, the ‘Let’s Grow Israel’ initiative was launched. It was headed by Michal Shalem, another close associate of Barkat, who worked with him at Jerusalem Municipality. The initiative, which got some of its funding from Kohelet and was promoted by Barkat, was active for some 18 months, with the goal of bolstering the periphery. The plan was based on a model suggested by Prof. Michael Porter, the Harvard economist who has been something of an ideological mentor for Barkat in recent years. It is worth noting that some of Porter’s research was funded by Kohelet and Barkat even confirmed to TheMarker that he transferred $1 million to Kohelet, which he had raised for this purpose.

The Shakuf website revealed another cooperative venture. According to the report, in November 2020, Barkat unveiled an ambitious plan to increase the size of settlements – a plan that was, in fact, written by Kohelet. At the time, Barkat’s responded to the Shakuf report by saying, “I am proud of my joint work with the Kohelet Policy Forum, with the goal of advancing a plan that is vitally important to the State of Israel and the Israeli people and to create a national, economic, liberal national agenda.”

The ‘Let’s Grow Israel’ initiative and the conferences held by Barkat led to public criticism and rumblings within the Likud party over the fact that Barkat – a multimillionaire – was using his fortune to promote his candidacy for Likud leader. But the subject under discussion is not just a moral one – it’s also a legal matter: Does Barkat’s activity through the Kohelet Policy Forum violate the laws governing political funding?

One expert in public law, who asked not to be named, explains that the question raised by Barkat’s behavior is whether research activity is the same as a donation, which would have to be reported to the State Comptroller. According to the expert, it is a complex area since policy research, unlike opinion polls, for example, is designed to benefit the general public and not for the use of politicians. He added that given previous reports about Barkat’s relationship with Kohelet, the State Comptroller’s Office should have stepped in and decided on the activity’s legality.

Attorney Shahar Ben-Meir takes a different view. “It can be argued that funding this kind of research is identical to cash donations, which the Knesset member must report to the State Comptroller,” he says.

Even if it happened during a period when there were no elections or internal primaries?

“They have to report donations at any time.”