JERUSALEM (Reuters) – Israeli financial technology firm Riskified is transferring $500 million out of the country, joining private sector opposition to the government’s planned overhaul of the judicial system, Israeli media reported on Wednesday.
Financial news website Calcalist quoted a letter to employees at Riskified from its CEO, citing concerns about the government’s proposed changes and the negative impact they may have on the economy.
Officials at Riskified were not available for immediate comment.
The judicial overhaul plan, which has already received initial parliamentary approval, would give the government greater sway on selecting judges and limit the power of the Supreme Court to strike down legislation.
Moody’s Investor Service warned on Tuesday that the planned judicial overhaul could weaken institutions and negatively impact Israel’s sovereign credit profile.
A number of other high-profile companies in Israel have already said they would be transferring large sums of money abroad due to the political uncertainty.
Critics of the planned law changes say Netanyahu – on trial on graft charges that he denies – is pursuing steps that will hurt Israel’s democratic checks and balances, enable corruption and bring diplomatic isolation.
Proponents say the changes are needed to curb what they deem an a
tivist judiciary that interferes in politics.
(Reporting by Ari Rabinovitch and Steven Scheer; Editing by Sharon Singleton)
