Israeli Supreme Court Proposes Canceling Yehuda Eliyahu's Appointment as RMI CEO and Reconstituting Selection Committee

The Israeli Supreme Court (High Court of Justice) has proposed canceling Yehuda Eliyahu's appointment as CEO of the Israel Land Authority (RMI) and reconstituting the selection committee that appointed him. This recommendation was made during a hearing on Sunday regarding petitions challenging his appointment. The parties involved have been given 48 hours to respond to the court's proposal.

According to the judges, the selection committee must reconvene with two of its five members replaced due to potential conflicts of interest. The members to be replaced are Meiran Prozner, head of the Budget Department at the Ministry of Finance, and Professor Idit Solberg. Solberg chairs a consulting firm owned by her husband that received government contracts, including about 10 million shekels from the Ministry of Construction and Housing in 2023. Since RMI is subordinate to this ministry, concerns arose that Solberg's participation in selecting the CEO could influence future contracts.

Additionally, Minister of Housing and Construction, Haim Katz, whose ministry works with Solberg's firm, was one of three ministers who signed Eliyahu's appointment, alongside Finance Minister Bezalel Smotrich and Prime Minister Benjamin Netanyahu. Regarding Prozner, it was revealed that Eliyahu attended a meeting between Smotrich and Prozner before Prozner became head of the Budget Department. Prozner later sat on the selection committee without disclosing this connection, which the state acknowledged should have been revealed during the appointment process.

The court also suggested that the reformed committee may interview candidates beyond the top three from the previous process. However, the question of who will serve as interim CEO until the new committee completes its work remains unresolved. The court ruled that any interim appointment must follow standard rules, which may prevent Eliyahu from serving due to his close political ties to Smotrich. The two have been political partners for 27 years, and appointing someone with such ties requires exceptional qualifications, which the court found Eliyahu does not possess compared to other candidates.

Furthermore, civil service regulations prohibit an interim CEO from competing for the permanent position to avoid unfair advantage. Eliyahu claims his political ties to Smotrich's party ended years ago. Notably, Knesset member Tali Gottlieb and Minister of Diaspora Affairs Amichai Shikli attended the hearing, highlighting the political sensitivity of the case.