Investigation Uncovers Corruption in Northern Israel’s Ein Yaakov Moshav Committee, Leading to Dismissal

The cooperative committee of Ein Yaakov, a moshav in northern Israel, has been dismissed following a corruption investigation revealing long-term misconduct in managing state lands. The registrar of cooperative societies at the Ministry of Economy, Attorney Tali Arfi, decided to remove all committee members and appoint professionals to restore proper governance. The investigation found that committee members controlled land allocations arbitrarily, reserved plots for associates, and engaged in unauthorized resale of land, violating guidelines from the Israel Land Authority and the Ministry of Housing.

According to the inquiry report, the committee charged buyers excessive fees for services and development, collecting approximately 12 million shekels beyond permitted amounts. The registrar described these actions as systemic misconduct rather than isolated incidents, leading to the annulment of all internal decisions related to land expansion and transferring materials to relevant authorities for further review.

Despite the ongoing investigation, the committee attempted to push through a controversial tourism project involving the transfer of land shares from developer Eyal Yesh to Har Meron Investments for 6.8 million shekels. The project, approved in an allegedly illegal vote with only 16% member participation instead of the required two-thirds, involves about 14 dunams intended for a hotel with 66 units and possibly a senior housing facility. The developer failed to meet agreed milestones for planning and permits, yet the committee allowed the sale of the project to another developer for millions.

Additionally, a side agreement requiring fixed monthly payments from the developer to the moshav, independent of actual revenues, was signed without disclosure to the Israel Land Authority and before member approval. This side deal effectively nullifies the legality of the main agreement, replacing the transfer of 26% of company shares to the moshav with fixed payments.

The registrar’s decision aims to restore proper management by appointing a professional committee and continuing the investigation into further irregularities, including those related to the tourism sector. The case highlights ongoing governance failures in cooperative agricultural communities managing state lands in Israel.