Jerusalem Municipality Wins Court Order to Seize UNRWA Funds
Translated & summarized from Now 14 by baba
The Jerusalem District Court ordered Bank Leumi to seize approximately 11 million shekels from UNRWA's account to pay Jerusalem Municipality property tax debts. Judge Haya Zandberg ruled that UNRWA's immunity expired with the termination of a key agreement and that the agency missed its chance to appeal the charges. The court also stated that concerns about terrorism financing do not prevent debt collection and that UNRWA must pay for services received despite its operations being halted in Israel. The ruling was praised by the CEO of "Bezalmo" as a victory against UNRWA's perceived unjustified immunity.
The story in 5 lines · by baba
- Jerusalem court orders Bank Leumi to seize 11 million shekels from UNRWA for tax debts.
- Judge ruled UNRWA's immunity expired after a key agreement's termination.
- UNRWA failed to appeal the tax charges, making them final.
- Court stated terrorism financing concerns do not prevent debt collection.
- Ruling allows seizure of funds despite UNRWA's operations being halted in Israel.
The Jerusalem District Court has ruled in favor of the Jerusalem Municipality, ordering Bank Leumi to transfer approximately 11 million shekels from UNRWA's bank account to cover outstanding municipal property taxes (arnona). Judge Haya Zandberg dismissed UNRWA's claims of immunity, stating that the agency's immunity ceased with the termination of the "exchange of notes" agreement between Israel and UNRWA. The court also noted that UNRWA failed to appeal the tax assessments for its Jerusalem properties, which include an office and warehouse complex in the Ma'alot Dafna neighborhood and a school in Sur Bahir, making the charges final.
The legal dispute began in February 2024 when Bank Leumi froze UNRWA's account due to concerns about funds being used for terrorism. UNRWA did not take legal action to unfreeze the account. Following Knesset legislation to halt UNRWA's operations in Israel, the Jerusalem Municipality pursued the tax collection for 2024 and 2025. UNRWA did not file any objections or administrative appeals against these charges.
In August 2025, a seizure order was placed on UNRWA's bank account for a debt of over 11 million shekels. Bank Leumi then sought court guidance. Judge Zandberg affirmed the municipality's position, ruling that UNRWA could not challenge the tax charges in this proceeding, having missed the legal avenues to do so. Diplomatic communications with the Ministry of Foreign Affairs were deemed insufficient substitutes for formal appeals.
The court determined that UNRWA's immunity stemmed from the 1967 "exchange of notes" agreement, which expired by law on October 7, 2024, thereby revoking the agency's immunity. This rejected the argument that UNRWA held automatic immunity as a UN auxiliary body. The ruling also stated that international commitments do not supersede explicit Knesset legislation.
Regarding the initial concerns about terrorism financing, the court clarified that this fear does not prevent the forced collection of tax debts. The execution of the seizure order would not result in funds being transferred to UNRWA, and the prohibition of its activities in Israel does not exempt it from paying for municipal services received. The court ordered Bank Leumi to implement the seizure and transfer the funds directly to the municipality.
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