Israeli watchdog probes Intel land deal

AN ISRAELI government watchdog wants to know how come chip-making outfit Intel got planning permission to expand its Haifa-based R&D operation so fast.

According to Israeli business publication The Marker the State Comptroller is investigating the background behind Intel's $27 million purchase of five acres of land in Haifa.

The chip-maker managed to get the public land re-classified so that it could build on it and was given such permission before a tendering process could take place.

The firm was up to its usual trick of putting a couple of countries up against each other in order to see which one will come up with the biggest sweetners. In this case, Intel pressured the Israelis by saying it might build the R&D facility in India instead.

The Comptroller is apparently shocked that the whole planning approval process took only nine months. "Could it be a rare case of efficiency among the planning bodies," asks The Marker, "or an illegal collaboration to gain approval for a plan ridden with problems?

Haifa officials said: "The efficiency of the city in advancing the plan vanquished the Indian government, which had pressed the international Intel management to transfer the Haifa facility to India."

Intel said it always, always, always obeys the law. µ

L'INQ
Ha'Aretz.