The shares of NASDAQ-traded Amdocs fell on Friday. It is not clear whether the development was related to the fact that the company’s name had been mentioned in connection with allegations that Israel had been tapping the phone lines of US Administration officials.

Amdocs’ share fell 2.92% to $70 and $1,116 at the close of trading on Friday, having risen $025 on the previous day. Turnover was low, with 330,900 shares changing hands on Friday, compared with 844,500 on Thursday. This may indicate that investors were in no rush to sell off the share in the wake of the press reports.

Amdocs’ real test will be tomorrow, the first day of trading following the publication of the allegations.

Israeli sources assessed yesterday that allegations that Israel was tapping US Administration phone lines were “a storm in a tea cup”. According to the same sources, the accusations were removed from the agenda after two senior Federal Bureau of Investigation officials stated that a year-long investigation failed to produce evidence against Israel.

The publication of the allegations, first in “Insights”, a periodical affiliated with right-wing daily “Washington Times”, and then by Internet newspapers, notably “Drudge Report”, caused grave discomfort to Israeli circles in Washington.

”Insight” said the allegations were based on dozens of sources, including intelligence sources. According to “Insight”, the FBI is convinced that Amdocs equipment has been used to break into the White House telephone system.

The denial by two senior FBI officials, highlighted by the “New York Times” and other media, refuted the report of “Insight”, which is known for its hostile reports with regard to the Clinton-Gore Administration.

”An intensive investigation has been conducted. There simply were no facts to corroborate the allegations that the Administration’s phone system has been broken into”, one source said.

Mark Regev, the spokesman of Israel’s Embassy in Washington, told “Globes”: “Israel is not spying in Washington”. He said that the accusations were scandalous, adding “I don’t even listen in on my wife’s phone calls”.

Amdocs’ spokesman Dan Ginsburg said that the company was not aware of the FBI investigation. “We welcome the opportunity to cooperate with the investigators or with any investigation whatsoever. We haven’t been contacted by the FBI or any other US government agency”, he said.

Published by Israel's Business Arena on 7 May, 2000