Israeli Supreme Court Orders Yehuda Eliyahu to End Tenure as Head of Israel Land Authority by July 19

The Israeli Supreme Court has ruled that Yehuda Eliyahu's tenure as CEO of the Israel Land Authority (ILA) must end by July 19. The decision was made by justices Yael Wilner, Ofer Groskopf, and Khaled Kabub following petitions challenging Eliyahu's appointment. Earlier this week, the court suggested canceling Eliyahu's appointment and reconstituting the selection committee. However, Finance Minister Bezalel Smotrich sought to keep his ally Eliyahu in office until a new committee completed its work, making the ruling a significant setback for him.

Eliyahu was appointed ILA CEO in May, but three petitions argued that his close 27-year personal and political relationship with Smotrich raised concerns of conflict of interest and improper motives behind the appointment. The government defended Eliyahu’s exceptional qualifications, but the selection committee’s scoring weakened this claim. Only three of five committee members gave Eliyahu the highest rating, while others favored candidates Kobi Yelovitz and Shuli Avni Shoham.

The court accepted claims that two committee members, Meirun Prozner and Professor Idit Solberg, were likely conflicted. Prozner, head of the Budget Department at the Finance Ministry, was selected in a process involving Eliyahu, raising conflict concerns since Eliyahu could have influenced Prozner’s appointment. Solberg chairs a company owned by her husband that received government contracts, including 10 million shekels from the Housing Ministry, overseen by Housing Minister Haim Katz, one of the three officials who signed Eliyahu’s appointment alongside Smotrich and Prime Minister Benjamin Netanyahu.

The ruling annuls Eliyahu’s appointment and the committee’s recommendation. The selection committee will be reformed, replacing Prozner and Solberg due to conflict concerns, and will resume interviews, including with Eliyahu and the other top candidates. Meanwhile, an interim CEO will be appointed under civil service law until the committee completes its work.