Welfare Ministry Cancels Tender After Daughter of Former Official Won
Translated & summarized from Ynet by baba
The Israeli Ministry of Welfare canceled a NIS 61 million tender for a homeless shelter after the winning company, owned by the mother of a former senior official involved in the tender's formulation, was revealed. The ministry cited potential conflicts of interest and damage to public trust. The decision came after a competitor filed an appeal. A new tender has not yet been issued.
The story in 6 lines · by baba
- The Ministry of Welfare canceled a NIS 61 million tender for a homeless shelter due to a conflict of interest.
- The winning company was owned by the mother of a former senior ministry official involved in the tender.
- The ministry cited damage to public trust and the appearance of equality as reasons for cancellation.
- The cancellation followed an appeal by a competing company that had operated the center for 20 years.
- A new tender has not yet been issued, potentially allowing the original winner to re-enter.
- The ministry stated no conflict of interest was found but adopted a strict approach.
The Israeli Ministry of Welfare has canceled a NIS 61 million tender for operating a shelter for the homeless after the winning company was revealed to be owned by the mother of a former senior official who helped shape the tender. The company, M.S. Shiluvim BaKehila, was awarded the contract on April 22, 2025, seven months after the tender was published on August 1, 2024. The ministry only canceled the award later, following legal challenges from a competing firm, Ben Yair HaSharon, which has operated the center for two decades.
An investigation by Ben Yair HaSharon found that M.S. Shiluvim BaKehila is owned by Miri Sha'ir, the mother of Dr. Rotem Efodi. Efodi served as the senior deputy director-general of the ministry's rehabilitation and prevention administration until May 2023 and was involved in formulating the tender. Despite M.S. Shiluvim BaKehila's initial declaration of no family ties to ministry employees, the connection became known when Efodi herself handled the technical aspects of submitting the bid.
The tender committee cited a "potential conflict of interest" and "serious damage to the appearance of equality and concern for public trust." Ben Yair HaSharon had also alleged irregularities in the scoring process. After an initial administrative petition was rejected, the company filed a formal appeal on July 8, 2025, arguing a clear conflict of interest and a violation of equality principles.
On November 16, 2025, the tender committee officially canceled the tender, acknowledging the "first-degree family connection" and Efodi's involvement in professional discussions related to the tender before her departure. The committee ordered a new tender to be issued quickly, but seven months have passed without a new one, potentially allowing the original winning company to participate again.
M.S. Shiluvim BaKehila stated that Dr. Efodi left her position a year before the tender was published and was not involved in writing it. The Ministry of Welfare maintained that while no conflict of interest was found, it adopted a strict approach and canceled the tender to uphold public trust.
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