(live here) – The Haifa District Court this week upheld a ruling on a settlement agreement signed between Deputy Mayor Sophie Nakash and the Haifa Municipality, in which Nakash was paid NIS 450. This brought to an end the high-profile legal proceedings that Nakash initiated against the municipality and former mayor Einat Kalish Rotem, alleging improper use of municipal resources for political purposes.
This is how it started: an external audit, an internal report, and a leak to the media
The roots of the affair lie in an external audit conducted by the accounting firm "Bar Lev & Co." at the Haifa Municipality, at the request of Kalisz Rotem's office during her term as mayor. The purpose of the audit was to examine deficiencies in municipal conduct, and among other things, the activities of Nakash, who at the time served as deputy mayor and chair of the finance committee, were also examined.
According to the report's findings, Nakash did not properly report her husband's business ties with the municipality and did not disclose her involvement in a luxury real estate project in the city, which was initiated by the company owned by her family - and this was during her tenure as a member of the local planning and building committee. Following the report, the legal department ordered the termination of the contract with the "Almog" company, which enjoyed a contract of about one million NIS per year, without a tender.
The findings were submitted for review by senior municipal officials – CEO, treasurer, legal advisor – and were later leaked to the media.
A defamation lawsuit and the battle for immunity
In October 2023, just days before the municipal elections, Nakash filed a defamation lawsuit against Kalisch Rotem for a total of NIS 2.6 million – NIS 2 million against Kalisch and NIS 1.5 million against the municipality. She claims that the publication of the report's findings was done for clear political motives, with the aim of publicly harming her and undermining her chances in the elections, in which she was placed second on Yona Yahav's list.
For her part, Kalish appealed to the court to recognize her actions as those taken in the context of her public office, and to receive immunity by virtue of being a public representative. She emphasized that she acted as required of her – by transferring the information to authorized entities for review.
The municipality, which was already operating under new management, initially refused to defend Klish, and even worked to formulate an external opinion, which came from the legal advisor of the Tel Aviv municipality – and supported the position of refusing to grant immunity. However, during the hearings, Judge Hananel Sharabi expressed reservations about the municipality's arguments, and recommended changing its position.
Ultimately, the municipality announced that it would reverse its decision and grant Klish the immunity she requested. As noted, the judge accepted her position, recognized Klish's immunity, and dismissed the defamation lawsuit against her.
Since the personal lawsuit against Kalisch Rotem was dismissed, the municipality remains the sole defendant. Sophie Nakash now has two achievements left: receiving financial compensation from the municipality – but not Kalisch Rotem herself – and some recognition of the harm she suffered.
If I understood correctly:
The deputy mayor in the current term (and the previous one) sued the previous mayor and the municipality she headed for a large amount of defamation, for an unproven accusation. (It is not clear from the article whether the audit findings were incorrect, or whether the problem lies in the leak of the findings before the elections.)
The parties recently reached a compromise in which the previous mayor apologized and was omitted from the lawsuit, while the current municipality, headed by Yona Yahav, remained the sole defendant. Therefore, the current Haifa municipality, as determined in the compromise approved by the court, will pay the plaintiff (deputy mayor in the current and previous terms) the sum of 450 NIS.
In other words, the deputy mayor will receive into her private account, from the municipal treasury to which she is entrusted, a large sum of money, from the money of Haifa residents, the taxpayers.
I understand it right?
Is there evidence of damage of half a million shekels?
The public deserves an explanation for such an amount.
What is disturbing about the story is that Klich, by virtue of her position, has immunity and is being prosecuted.
And who pays?? We are the residents of the city