Segment #12: GCS: The Great Winner – 389-391


Drucker mentions, and elaborates through different illustrations, that GCS and mainly the Israeli partners (Zilbershtein and Gaon) made quite a profit from their involvement with Barak.


[389] "Zilbershtein and Gaon definitely made a profit from their connection to Barak. The two still claim that they had no economic gain from their work with Barak. This is not necessarily true. GCS, the company in which they are partners, was consulting the Association of Constructors and Builders in Israel while it advised Barak in his term as PM. The main objective set by the ACBI was getting passing legislation to make mortgage interest payments tax deductible [..] GCS, naturally, promoted that agenda". [Colliding with the Israeli treasury, which greatly opposed such a decision;]

Barak, a day after meeting his Minister of Treasury Avraham (Baiga) Shochat, who opposed making mortgage interest payments tax-deductible, pushed the matter in a government meeting and ordered the establishment of a committee for the matter.

Another ACBI 'war' was waged on the expansion of foreign worker quotas [..] This war was also won [..] A day after the failed elections, Shmuel Olpiner, the head of the ICU, fired GCS. The monthly payment for GCS was US $25,000, an astronomical wage by any measure.

GCS had another powerful client: the forum of the cable companies. This forum wanted to receive a government permit to operate cable internet. Barak supported this notion, though it was eventually denied due to legal issues.

The bottom line is that GCS, a new company, established after the 1999 elections, a company that had no actual experience in the field of promotion and PR, became, within one year, one of the leading companies of the field. Its customer portfolio includes the cellular companies' forum, The Jordan Valley Project and more".