Israeli Government Seeks to Cancel Appointment of Smotrich Ally but Funds His Legal Defense

The Israeli government is financing a private lawyer at a cost of approximately 100,000 shekels to defend the appointment of Yehuda Eliyahu, a close associate of Finance Minister Bezalel Smotrich, as CEO of the Israel Land Authority (ILA) in the Supreme Court. This comes despite the state's recent request to the court to annul the appointment and establish a new selection committee after further procedural flaws were discovered. The Supreme Court has already issued a conditional order indicating it is considering invalidating the appointment.

In its response submitted on Wednesday ahead of the hearing scheduled for Sunday, the state requested the cancellation of Eliyahu's appointment, the formation of a new search committee, and the appointment of an interim CEO until a permanent one is selected. Meanwhile, Prime Minister Benjamin Netanyahu, Finance Minister Smotrich, and Housing Minister Haim Katz received approval to fund private legal representation opposing the state's position in court. This funding effectively supports Smotrich's continued fight to keep his longtime political ally Eliyahu in the CEO role.

Eliyahu was appointed on May 4 and has so far advanced only one significant decision: signing a master plan agreement with the local council of Karnei Shomron in the West Bank on June 14. This deal, the first of its kind with a local authority in Judea and Samaria, involves a 2 billion shekel investment in infrastructure and the construction of about 6,000 housing units and public institutions. Smotrich's political interest in maintaining control over the ILA stems from its responsibility for marketing state lands and managing development budgets that influence local authorities and voter bases.

The state's shift in position followed a report by Calcalist revealing a potential conflict of interest involving Professor Idit Solberg, a member of the selection committee that recommended Eliyahu. Legal advisors, including the State Attorney and Civil Service Commission, concluded the committee should be disqualified. The petitions against the appointment were filed by several organizations, including Academia for Israel Democracy and the Arab Center for Alternative Planning.

Attorney Doron Taubman, representing the prime minister and ministers, argued there is no basis for judicial intervention, emphasizing Solberg's extensive experience and denying any personal ties to the ministers. He stated that disqualifying committee members due to government contracts would undermine many senior appointments made by past governments.