A significant development has emerged in the managerial crisis at Israel Railways, following an update submitted by the State to the High Court of Justice regarding a petition filed against the Minister of Transport, Miri Regev, and the Minister for Regional Cooperation, Dudi Amsalem. The petition demanded the staffing of the national infrastructure company's board, which has been depleted since the resignation of previous directors.
According to a report by 'ICE', the State informed the High Court that the Government Companies Authority committee, chaired by retired Judge Shulamit Dotan, will convene next week to discuss the appointment of two external director candidates: Prof. Chen Cohen from Ben-Gurion University and Dafna Ein Dor. This move comes against the backdrop of a long-standing managerial paralysis that has prevented the formation of committees required for approving financial reports.
According to the report, the railway has been operating without a permanent CEO since August 2025, alongside a series of departures among senior management. The managerial deadlock deepened following the disqualification of Yaakov Marciano’s candidacy for acting CEO by the Dotan committee—a decision that led to the resignation of two directors in protest of the appointment process. Currently, the company does not meet statutory requirements mandating the presence of a financial expert on the board, complicating the ongoing operations of the railway, which is responsible for complex infrastructure projects.
The State noted in its filing that it recognizes the urgent importance of these appointments and will provide a further update on the progress of proceedings to the court by September 7th. For the public and stakeholders in the infrastructure sector, this is a first step toward attempting to rescue the company from the deep crisis affecting its leadership. The consequences of the current situation are reflected not only at the government level but also in the operational capacity of the railway, which is required to deal with complex operational malfunctions under heavy load. Ongoing monitoring of government decisions and appointment procedures in the coming weeks is expected to determine whether managerial stability will be restored to the state-owned company.