Israeli High Court Proposes Canceling Yehuda Eliyahu's Appointment as Israel Land Authority CEO

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

According to the HCJ, the selection committee must reconvene with two of its five members replaced due to potential conflicts of interest. The two members to be replaced are Meirhan Prozner, head of the Budget Department at the Ministry of Finance, and Professor Idit Solberg. Solberg chairs "Solberg Consulting," a company owned by her husband that provides services to government ministries, including contracts worth approximately 10 million shekels from the Ministry of Construction and Housing in 2023. Since the ILA operates under the Ministry of Housing, concerns arose that Solberg’s involvement in selecting the CEO could influence future contracts and revenues for her company.

Additionally, Housing Minister Haim Katz, whose ministry works with Solberg’s company, was one of three ministers who signed off on Eliyahu’s appointment, alongside Finance Minister Bezalel Smotrich and Prime Minister Benjamin Netanyahu. Regarding Prozner, it was revealed that Eliyahu participated in a meeting between Smotrich and Prozner during the process that led to Prozner’s appointment as Budget Department head. Prozner later served on the selection committee without disclosing this connection, which the state acknowledged should have been revealed during the appointment process.

The HCJ also recommended that the reformed committee be allowed to interview candidates beyond the top three from the previous selection round. A key unresolved issue is who will serve as acting CEO of the ILA during the interim period until the new committee completes its work. The court ruled that the acting CEO must be appointed according to established rules and did not specify whether Eliyahu could serve in this role. Existing regulations may prevent Eliyahu’s appointment as acting CEO due to his close political ties to Minister Smotrich, with whom he has a 27-year political partnership. The court found no evidence that Eliyahu possesses exceptional qualifications surpassing other candidates, which could bar him from even the interim position. Furthermore, civil service rules prohibit an acting CEO from competing for the permanent role to avoid unfair advantages.

Eliyahu has claimed his political ties to Smotrich’s party were severed years ago. Notably, Knesset member Tali Gottlieb and Minister of Diaspora Affairs Amichai Shikli attended the hearing, highlighting the political sensitivity surrounding the case.