Supreme Court Justice Elyakim Rubinstein, in his capacity as state attorney general, sent a sternly worded letter to then Minister of Industry & Trade Ehud Olmert on June 16, 2003, warning him of the ongoing efforts to rezone land in the Eilat and Atlit areas. Rubinstein referred to an agreement made between Israel Lands Administration officials and entrepreneur Danny Dankner, one of the suspects in the Holyland investigation.

In the letter, Rubinstein points out that state officials are responsible to protect state interests above all else, which includes promoting the personal interests of developers. He warned of “stripping the state of her assets”.

Rubinstein expressed concerns regarding the amount of land addressed in the agreement, calling for a review of the matter by directors of the Lands Administration.

Undeterred, Olmert convened the directors of the Lands Administration and on October 22, 2003, the deal was pushed through with the strong backing of the minister and the weight of his office, advancing Danker’s interests.

Israel Nature Protection officials and the Movement for Quality Government (MQG) were unwilling to accept the decree as a fait accompli, turning to the High Court of Justice, which issued a restraining order prohibiting the deal from advancing, from being actualized. They expressed amazement that despite mounting public opposition and the position of the attorney general, Olmert continued pushing his agenda as if nothing was going on. This major deal also led the groundwork for the next deal, approval of a Bank Leumi loan that enabled the Dankner family to acquire 11% of the holdings of Bank Hapoalim despite the fact that he did not have holdings or the funds to secure such a transaction. In essence, the land was used to secure the bank deal.

Attorney Eliad Schrage, who heads MQG, questions how Land Administration directors approved the deal despite the audible objections from the attorney general and state comptroller.

(Yechiel Spira – YWN Israel)