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Criminal Case (Tel Aviv) 4368-05-16 State of Israel v. Siemens Israel Ltd. - part 56

July 3, 2017
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The characteristics that Justice D. Barak Erez discussed as necessitating the prosecution of the corporation in any case are all fulfilled in the case before me – this is a business company, operating in a competitive market, and the offenses are intended for its needs and the advancement of its interests.  Harm to her, as her counsel noted, if she is convicted, will also be severe and will lead, inter alia, to her inability to participate in tenders.

The Honorable Justice Y. Amit noted in the same matter that it is necessary to examine why the state reached the arrangement as it did, but if the arrangement is proper, there is room in any case to prosecute the corporation (his comment at p. 21 of the judgment):

"As for the comment of my colleague Justice Barak-Erez, I will say briefly that there is not necessarily an anomaly in the prosecution of a corporation without the prosecution of the corporation's organs, and my colleague does not dispute this.  In the present case,  I am satisfied that the State Attorney's Office conducted a professional examination of the matter in depth of evidence and legal issues, and therefore there is no room for our intervention in the plea bargain and the deletion of respondents 4 and 6 from the indictment."

In additional criminal hearing 8062/12 State of Israel Ministry of Environmental Protection v. Israel Ports Development and Assets Company inTax Appeal (published in Nevo, 2015, hereinafter: the Israel Ports case),  the Honorable Judge E. Hayut and the Honorable President A. Grunis referred to the plea bargain, even though this question was not discussed in the additional hearing.  The Honorable Justice E. Hayut emphasized that it is inappropriate that only the corporation be convicted of environmental offenses and that the managers, who actually committed the acts or did not take care to prevent them, should be fired.  According to her:

"It is appropriate, as far as possible, and in accordance with the circumstances of each and every matter ...  Not to rush to plea bargains that completely exempt the corporation's officers from criminal liability due to their involvement in the indictable acts."

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