Claim of about 16 million: Temporary foreclosure orders on the assets of the Gur Yard Association

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The Southern District Attorney’s Office today (Tuesday) filed a lawsuit on behalf of the Ministry of Health in the Be’er Sheva District Court against the Medical and Salvation Association – Gur Dachsidi Gur Visiting Association in Eretz Israel and MCIMMRC. Holdings 2014 Ltd., in which it sought to oblige the defendants, jointly and severally, to return to the public coffers a cumulative amount of more than NIS 16 million, for breach of obligations towards it.

The matter of a lawsuit, in a demand for the return of public funds that the state transferred to the association for the establishment and operation of a center for the provision of immediate medical services in the city of Ashdod – a center that has not been established and to this day is centrally located in the city of Ashdod.

According to the statement of claim, the association did not fulfill its obligations, did not complete the construction of the medical center and did not operate it, and finally even increased to do and sold the land and the building it began to build there to defendant 2 ?? MCIMRC Holdings 2014 Ltd. – for an amount of NIS 57,150,000.

This is without the knowledge of the Ministry of Health, while illegally grabbing profits into its pocket, and yet it continues to hold the support funds and refuses to return them to the state coffers.

The affair began in 2007, when support tests were published for the establishment of a center for immediate medical services in the city of Ashdod, the purpose of which was to provide a temporary response to the needs of Ashdod residents until the establishment of a permanent hospital in the city.

As part of this, the association entered into a support agreement with the Ministry of Health and received a sum of NIS 9.6 million, pledging to establish the medical center by the end of 2008, and operate it for 10 years or until the gates of a permanent hospital in the city open.

The association, which did begin construction of the medical center, did not live up to its commitment to complete it and begin operating it on a set date or at any other time.

During the years since the signing of the support agreement, the association continued to claim that it was making efforts to meet its obligations, and from time to time requested additional extensions, but in practice – not only was the building not completed but the association also increased and in 2014 sold the land and property. A third party for an amount of NIS 57,150,000, without the knowledge of the Ministry of Health.

As part of the sale agreement between the association and the acquiring company, the acquiring company undertook to establish the medical center, in accordance with the terms of the agreement signed between the state and the association. However, the acquiring company also did not complete the construction of the medical center, thus also violating the commitment it undertook.

In 2017, the state approached the association and asked for the return of the support money.

In response, the association, through its attorney, submitted written arguments regarding the demand within which the association did not deny its commitment to complete the establishment of the medical center and operate it for 10 years, claiming, among other things, that it sold the property to a third party to complete the center. Towards the Ministry of Health.

However, in practice, the acquiring company now owns a property in which NIS 9,600,000 of public money was invested, contrary to regulations and an agreement under which the funds were given in the first place, and without the state being given any consideration for them.

In the statement of claim, the state asks the court to order the defendants, jointly and severally, to return and / or compensate the state in a cumulative amount of NIS 16,279,206.

The statement of claim stated: “In the sale of the land, the association in fact blocked the possibility of fulfilling its obligations in the establishment agreement, while illegally sweeping huge capital into its pocket. And yet – boldly, the association continues to hold the support funds and refuses to return them to the state coffers. “

In addition, the state asked the court to impose temporary foreclosure orders on the defendants’ assets, rights and money, in order to secure the amount of the lawsuit, legal expenses and attorney’s fees.

The court granted the motion and imposed temporary foreclosure orders on the defendants’ assets.

The state is represented in the proceedings by attorneys Leah Huminer Polak and Liron Shai of the Southern District Attorney’s Office (civil), with the assistance of Adv. Adi Ron of the Civil Enforcement Unit of the State Attorney’s Office.





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