Legal Counsel Warns of Conflict of Interest in Housing Minister's Pick for Land Authority CEO

The legal advisor to Israel's Ministry of Construction and Housing has raised concerns about a potential conflict of interest involving Finance Minister Bezalel Smotrich's attempt to appoint his associate, Yehuda Eliyahu, as the Director-General of the Israel Land Authority (ILA). This concern is a primary reason cited by the Attorney General's office for opposing the renewal of the appointment process, especially during the current election period.

The government has filed a petition with the High Court of Justice, seeking to bypass the Attorney General and proceed with the appointment before the upcoming elections. The legal opinion, authored by Efrat Poratcia, the legal advisor for the Ministry of Construction and Housing, in coordination with Deputy Attorney General Dr. Gil Limon, was prompted by the government's request to reconvene the selection committee. Eliyahu, who is close to Smotrich and currently serves as the acting Director-General, is one of the top three candidates.

Selection committees are meant to evaluate candidates based on professional criteria, free from political influence. However, Smotrich is slated to appoint at least one of the committee's four members. Poratcia noted that the "difficulty arising from the close relationship between the Finance Minister and the candidate Yehuda Eliyahu requires an examination of whether a conflict of interest arises due to the minister's involvement in determining the committee's composition."

Previously, the High Court disqualified Eliyahu's appointment in July due to conflicts of interest involving two committee members. One was found to have a conflict because Eliyahu had been involved in his appointment to a senior position at the Finance Ministry. The other committee member's potential conflict stemmed from her husband's private company providing services to government ministries, including the Ministry of Construction and Housing.

The court had also acknowledged a significant personal connection between Eliyahu and Smotrich, noting their long-standing relationship as friends, relatives, and political associates. The court mandated that the two conflicted committee members be replaced and that the committee re-evaluate the top candidates, including Eliyahu. The government now proposes replacing the conflicted members with Edna Lagental and Avi Meir.

However, the legal advisor argues that the government has overlooked the election period restrictions on appointing senior officials, which are designed to prevent politically motivated appointments. Such appointments are permissible only in exceptional cases, such as for purely professional roles unaffected by ministerial policy, or if the committee had already submitted its recommendation before the election period. Neither condition applies here, as Eliyahu is already serving as acting Director-General, and the ILA is subject to political influence. Furthermore, the advisor stressed that interviewing Eliyahu during an election period is prohibited due to his deep ties with Smotrich, casting doubt on the committee's ability to proceed even if the court allows it.