Welfare Ministry Cancels Tender After Appointing Firm Linked to Ex-Official's Mother

The Israeli Ministry of Welfare has canceled a NIS 61 million tender for operating a shelter for the homeless after it was revealed that the winning company belonged to the mother of a former senior official who had been involved in formulating the tender. The tender was initially published on August 1, 2024, and the winning bid was announced on April 22, 2025. The ministry only canceled the award seven months later, following legal challenges from a competing firm.

The tender committee determined there was a "potential conflict of interest" and that the evidence indicated a "severe damage to the appearance of equality and a concern for damage to public trust." Despite this, a new tender has not yet been published, allowing the original winning bidder to potentially participate again.

The company, M.S. Shilev B'Kehila, a newcomer to the field, was awarded the contract for a shelter in Tel Aviv for the homeless and addiction sufferers. An investigation by Ben Yair HaSharon, which has operated the center for 20 years and also bid on the tender, found that M.S. Shilev B'Kehila is owned by Miri Sha'ir, the mother of Dr. Rotem Efodi. Efodi served as senior deputy director-general and head of the rehabilitation, guidance, and prevention administration until May 2023, the very department responsible for the tender. Efodi herself was involved in drafting parts of the tender.

M.S. Shilev B'Kehila initially declared no familial ties to ministry employees, but the connection became apparent to the tender committee when Efodi technically handled the tender submission. Ben Yair HaSharon alleges the scoring was flawed, with the committee giving them zero points in several sections while not penalizing M.S. Shilev B'Kehila where necessary. Ben Yair HaSharon filed an administrative petition, which was initially rejected, with the court suggesting an appeal to the tender committee be filed instead.

On July 8, 2025, attorney Ofir Gantz filed the appeal, citing a "clear conflict of interest" and arguing the committee's decision violated tender conditions and the principle of equality. A month later, the committee reconvened and decided to cancel the tender, citing the need to maintain public trust and equality, especially given the first-degree familial connection between the winning company's owner and a senior official involved in drafting the tender. The committee ordered a swift new tender, but seven months have passed without one.

M.S. Shilev B'Kehila stated that no conflict of interest was found and that Dr. Efodi finished her role a year before the tender was published and was not involved in its writing. The Ministry of Welfare maintained that no conflict of interest existed and that it acted lawfully, but decided to adopt a strict approach and cancel the tender to uphold public trust and equality.