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News
High Court Justices End Term of Karta Director

by Betzalel Kahn

Justices of High Court have decided to end the term of office of Karta company director Ephraim Holtzberg. The decision was reached on erev Pesach despite recommendations from government officials to continue his term in office.

Justices Procaccia, Theodore Or and Yitzhak Zamir terminated Holtzberg's appointment following three years of service and also fined him NIS 10,000. The appeal to terminate his position was filed by the Elrov Company, owned by contractor Alfred Akirov, who is building the Mamilla compound.

There has been a long dispute between Akirov and Holtzberg. Akirov's company is developing the multimillion-dollar Mamilla project opposite the Old City in Jerusalem. As a Jerusalem city-owned corporation, Karta is responsible to oversee development projects. In the middle of the work, Akirov asked that two areas originally designated as open pedestrian malls be rezoned to allow him to build two movie theaters. Holtzberg and the Karta board ruled argued that the zoning should not be changed and, in any case, if the change is made Akirov should have to pay for the substantial increase in value.

Though Holtzberg and the Karta directors insisted that the issues were the interests of the community in zoning changes and the money involved, Akirov never addressed those matters in the public debate and instead turned it into a matter of religion, declaiming that Holtzberg is opposed to movie theaters because of his principles. Holtzberg argued that Akirov was offering the city $100,000 for a $15 million increase in value.

After conducting a long and nasty public campaign to put pressure on the Karta board, including empty threats to withdraw from the project, Akirov finally sued in the High Court. Consistent with its anti-religious record, the Court found in Akirov's favor.

Letters in favor of Holtzberg had been presented to the High Court by a number of leading figures, among them Housing Minister Yitzhak Levi who recommended that Holtzberg retain his position. A letter was also presented by Attorney Professor Yosef Gross stating that Holtzberg had amassed invaluable experience during his term of office and had made impressive achievements on behalf of the company.

Professor Gross' letter was sent to the deputy director of the Authority of Governmental Companies. Gross also wrote that an appointee who has been approved by the Committee for Qualifications of Senior Public Officials does not have to be approved each time his term of office is due to elapse, which was the issue in this case.

The State Prosecutor did not accept the Holtzberg's claim in the High Court, even though it was based on the opinion of Professor Gross.

When Holtzberg's attorney, Renato Yarak, claimed that the Housing Minister approved the extension of the appointment for two more years, Akirov's attorney replied: "The Prime Minister told us that he would never approve Holtzberg's appointment."

The judges, it should be noted, did not respond to that acerbic and substantively irrelevant comment, something which supports Holtzberg's claim that Akirov managed to persuade even the Prime Minster not to extend Holtzberg's appointment. The judges also refused a request by Karta's attorney, Yoram Bar-Sela, not to disqualify Holtzberg immediately so that the company would not be left without any general director.

Currently, Holtzberg's appointment has been frozen by High Court order. This is the first time ever that the High Court has issued orders to terminate a public position at once, without enabling its holder to continue in office at least until a substitute is found. However, even if the Committee for the Examination of Public Appointments extends Holtzberg's term of office by an additional month, its decision will take effect only if the Prime Minister signs the appointment.


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