Supreme Court Rules Jerusalem Municipality Unlawfully Transferred Millions

The Supreme Court dismissed the Jerusalem municipality's appeal, upholding a ruling that it unlawfully transferred millions without tenders for 12 years.

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Supreme Court Rules Jerusalem Municipality Unlawfully Transferred Millions
Photo: ICE / עיריית ירושלים (צילום shutterstock)

The Supreme Court delivered a major legal blow to the Jerusalem municipality, as Supreme Court President Yitzhak Amit fully upheld a district court ruling finding that the city unlawfully transferred tens of millions of shekels over 12 years without issuing proper tenders.

The funds, largely allocated to ultra-Orthodox entities under the guise of joint ventures, were channeled following a petition by the Hitorerut faction and its leader Adir Schwartz. Between late 2019 and November 2021 alone, the municipality transferred at least 36 million shekels through this irregular procedure.

Recipients included the Tzama festival of Chabad youth, the Al HaMaayan network associated with Shas, and even the Bnei Brak municipality. The Supreme Court rejected the city's appeal, emphasizing that municipalities must strictly adhere to the principle of administrative legality.

The municipality claimed it acted under the supervision of the Ministry of Interior, but the ministry denied any involvement and supported the petitioners. Following the dismissal of the appeal, the city was ordered to pay 20,000 shekels in legal costs.

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