Court Ruling Clears Path for Acting Land Authority Director, But Political Hurdles Remain

The Supreme Court on Thursday ruled that Yehuda Eliyahu may continue to serve as the acting director of the Israel Land Authority (ILA), removing a significant legal obstacle. However, his continued tenure still requires the signature of the minister responsible for the ILA, Haim Katz, who had initially opposed extending the appointment. Sources close to Finance Minister Bezalel Smotrich believe Katz will eventually sign the extension following the court's decision.

The complex situation stems from a failed attempt to permanently appoint Eliyahu, a legal dispute over the Attorney General's powers, and a personal and political conflict between Eliyahu and Katz. The appointment process was marred by issues, leading the Supreme Court to find flaws in the selection procedure. A compromise was reached where Eliyahu would continue as acting director while a revised selection committee would re-evaluate candidates without restarting the process.

This compromise, however, did not resolve the issue of Eliyahu's permanent appointment, and his acting role became a point of contention. The latest dispute centered on whether extending Eliyahu's acting term required consultation with the Attorney General. The court ultimately sided with the interpretation that Eliyahu's current acting role counts as his second in the relevant period, thus not necessitating immediate consultation with the Attorney General.

Despite the legal clearance, the practical hurdle remains Katz's refusal to approve the extension. The friction between Katz and Eliyahu has escalated into a public confrontation, with Katz even summoning Eliyahu for a pre-termination hearing, which was reportedly halted by Prime Minister Benjamin Netanyahu. Eliyahu subsequently sent a sharp letter against Katz's conduct, further worsening their relationship.

Political considerations are also at play, with the upcoming elections and internal government power dynamics influencing the situation. Control over the ILA, a significant public body responsible for state lands, could be a factor in post-election coalition negotiations. Furthermore, the ongoing leadership instability at the ILA has been cited as a contributing factor to a sharp decline in land marketing for construction this year, impacting the housing market and real estate sector.

While the Supreme Court's ruling removes a legal barrier, the final decision on Eliyahu's immediate future rests with Minister Katz. If Katz signs the extension, Eliyahu can continue his role. Simultaneously, the process for a permanent appointment must be completed by the revised selection committee. Experts anticipate that efforts to finalize a permanent appointment, whether for Eliyahu or another candidate, will likely intensify after the elections.