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Israel Cancels Tender After Winning Bid Linked to Former Ministry Official
The Israeli Ministry of Welfare canceled a NIS 61 million tender for operating a homeless shelter in Tel Aviv after it was revealed that the winning company is owned by the mother of a former senior ministry official who helped draft the tender. The decision came after a legal challenge by a competing firm that had operated the center for 20 years.
3 newsrooms · 2 languages · sinceWhat happened
- 01The Ministry of Welfare canceled a NIS 61 million tender for a Tel Aviv homeless shelter due to a potential conflict of interest.
- 02The winning company, M.S. Shiluvim BaKehila, is owned by Miri Sha'ir, the mother of former senior ministry official Dr. Rotem Efodi.
- 03Dr. Efodi served as senior deputy director-general of the rehabilitation and prevention administration until May 2023 and helped draft the tender.
- 04The competing firm Ben Yair HaSharon, which operated the center for 20 years, challenged the award after discovering the family connection.
- 05The tender committee cited damage to the appearance of equality and concern for public trust as reasons for the cancellation.
- 06The ministry stated that a legal review found no actual conflict of interest but it chose to adopt a strict approach.
- 07Seven months have passed since the cancellation, and a new tender has not yet been published.
The tender, published on August 1, 2024, was initially awarded on April 22, 2025, to M.S. Shiluvim BaKehila, also referred to as M.S. Shilev B'Kehila. The competing firm, Ben Yair HaSharon, filed an appeal alleging unfair scoring and a conflict of interest. Their investigation revealed that the winning company is owned by Miri Sha'ir, the mother of Dr. Rotem Efodi, who served as the senior deputy director-general of the ministry's rehabilitation and prevention administration until May 2023 and was involved in formulating the tender.
Although the winning company initially declared no family ties to ministry employees, the connection became known when Dr. Efodi herself handled the technical aspects of submitting the bid. The tender committee cited a potential conflict of interest, serious damage to the appearance of equality, and concern for public trust in its cancellation decision. The ministry stated that while no actual conflict of interest was found after a legal review, it adopted a strict approach. Seven months have passed since the cancellation, and a new tender has not yet been published, potentially allowing the original winner to bid again.
Summarized by baba from the reports of 3 newsrooms. Updated
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