An internal inquiry conducted by the Company for Restitution of Holocaust Victims Assets has revealed that the group chose an architectural firm linked to its chief executive’s son to help the government-run organization relocate its headquarters.

The CEO, Brig. Gen. (Res.) Zvi Kanor, was appointed in August of last year, and promptly thereafter announced he would be moving the company’s offices from Ramat Gan to Petah Tikva. Kanor said at the time that the move – which cost the company hundreds of thousands of shekels – was necessary, as the owner of the property had demanded that the organization leave.

Kanor appointed senior company executive David Shoham to oversee the move. Shoham contacted five architectural firms to compete for the tender, including Toolbox Design, owned by Itai Gidron and Yaron Kanor, the CEO’s son. Toolbox Design won the tender, landing it a contract worth tens of thousands of shekels.

The elder Kanor did not respond to the ombudsman’s report. “While writing the report, we spoke with the CEO and asked for comments,” the document said. “During that conversation and in e-mails provided to us, the CEO was unwilling to refer to the matter, claiming he had not been involved.”

Still, the ombudsman discovered that Kanor had signed checks made out to several companies, including his son’s.

At a meeting of the company directorate held at the beginning of this month, Kanor said, “I knew the company was looking for architects and I said as much to my son’s partner, Itai Gidron. From that point on, there was no communication.”

The ombudsman’s report leveled harsh criticism at the chief executive’s actions. “The company did not operate as it should have regarding communication with suppliers,” the report stated. “The manner in which suppliers were contacted and the contract signed was flawed, inappropriate for a government organization and in violation of the instructions issued for suppliers.”

A senior company official told Haaretz that the directorate is working to determine whether Kanor will be kept on as chief executive. For his part, Kanor said this week that he had “acted in good faith; the selection of an architectural firm was up to Shoham.”

The company responded by saying that “the company’s investigative committee discovered failings in the process of moving our headquarters to Petah Tikva. The company administration has noted the report’s findings, and is working to correct those failings.”