Supreme Court Upholds Ban on Undisclosed Jerusalem Funds to Haredi Groups

Israel's Supreme Court has rejected an appeal by the Jerusalem Municipality, upholding a lower court's decision to cancel a procedure that allowed the transfer of tens of millions of shekels without competitive bidding. The ruling, delivered by Justice Yitzhak Amit, specifically noted that the procedure lacked a legal basis.

The canceled procedure had facilitated the transfer of funds for various purposes, including events and organizations within the Haredi (ultra-Orthodox) community. The court's decision means that such transfers must now adhere to standard public procurement regulations, requiring tenders and open competition.

The municipality had argued for the necessity of the procedure, likely citing the need for swift funding for community needs. However, the court found these arguments insufficient to justify bypassing legal requirements for public fund allocation. The ruling emphasizes the principle of transparency and fairness in the use of public money, ensuring that all eligible organizations have an equal opportunity to receive funding through established legal channels.

This decision is expected to have significant implications for how the Jerusalem Municipality allocates funds, particularly to religious and community groups, requiring a more rigorous and transparent process moving forward.