The beverage company 'BLU' is expected to receive a huge fine

The Environmental Protection Ministry is considering charging the 'BLU' company NIS100 million  for not acknowledging the reporting of the company's collection and recycling goals for the years 2019-2020.

In the ministry's announcement, it was stated that in an in-depth audit initiated by the commissioner under the law on the deposit of beverage containers at the Environmental Protection Ministry, the findings of which were submitted these days, it emerged that 'BLU' Beverages Israel Ltd., owned by businessman Anan Shamshom, did not provide sufficient references to verify its reports on compliance with the collection goals and the recycling for the years 2019-2020.

The deposit law states that in the case where the supervisor has reasonable grounds to assume that the report is incorrect, he may, after giving the manufacturer or importer an opportunity to voice his claims, determine the amounts that the manufacturer or importer must pay.

Following the findings of the audit, the supervisor in the office is considering not recognizing the company's reports for these years, and has contacted the company in order to give it an opportunity to assert its claims in the matter. If, after examining the claims, the supervisor decides not to recognize the collection and recycling goals, the company will have to pay, for the years 2019-2020, double the amount of the deposit amounting to approximately NIS 100 million.

The deposit law imposes on manufacturers and importers of beverage containers obligations to collect and recycle empty beverage containers in accordance with the goals set forth in the law, in order to implement the "polluter pays" principle.

'BLU' Beverages Israel Ltd. is an importer of beverage containers and in accordance with the law was supposed to collect in the years 2019-2020 marked empty beverage containers at a rate of 73% each year or 77% of the total beverage containers it marketed on a two-year average, as well as to recycle 90% of the beverage containers it collected The company reported to the Ministry that it met the targets (with the exception of the recycling target for 2019).

About a year and a half ago, it was decided to conduct a sample in-depth audit of its reports - as is done from time to time for other companies as well. The audit was conducted later and alongside a police investigation by the National Unit for the Fight against Economic Crime (YALK) in Lahav 433, which included cooperation with the Environmental Protection Ministry and with the Haifa Customs and VAT Investigation Unit, the Center for National Cargo Diagnostics and accompanied by the prosecution for special cases in the Tax Authority, the Civil Prosecution ( Tel Aviv and Jerusalem Districts, Civil Enforcement Unit) and the Office of the Accountant General.