Foreclosures on the health arm of puppy storks


The Be’er Sheva District Court imposed temporary foreclosures on the assets of the “Medicine and Salvation” association, the health arm of Gur Hassidim, and MCAMRC, which purchased a property from it in Ashdod, to secure a NIS 16 million lawsuit filed against the state. The puzzling deal and the questions surrounding it, which arose from an audit report by the Registrar of Associations, were revealed in “Calcalist”.

The motion for imposition of temporary foreclosures stated that the defendants “violated their obligations to the state, creating a situation in which millions of shekels of public money given in the public interest find themselves in the respondents’ private accounts, instead of serving the public interests for which they were intended.”

Read more in Calcalist:

The Southern District Attorney’s Office (civil), on behalf of the Ministry of Health, filed a lawsuit in the District Court in the High Court of Justice against the “Medicine and Salvation Association – Gur Dachsidi Gur Visiting Association in Eretz Israel” and MCIMARC Holdings 2014 Ltd. “M, 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 to it.

According to the State Attorney’s Office’s statement: “The matter is a lawsuit, demanding the return of public funds that the state transferred to the association for the establishment and operation of a center for providing immediate medical services in the city of Ashdod – a center that has not been established to this day.

“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 the construction and sale of the land and the building it began to build to Defendant 2 – MCIMARC. Holdings 2014 Ltd. – for an amount of NIS 57.1 million. “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 abandoned building near Assuta Hospital in Ashdod Photo: Avi Rokach

“The beginning of the affair 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 solution to the needs of Ashdod residents until a permanent hospital was established in the city. While undertaking to establish the medical center by the end of 2008, and to operate it for 10 years or until the gates of a permanent hospital in the city open.The association, which did begin building the medical center, did not meet its commitment to complete and start operating on 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. To a third party for an amount of NIS 57.1 million, 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 purchasing company did not complete the construction of the medical center and thus violated its commitment.

In 2017, the state approached the association and asked for the return of the support money. In response, the association, through B.C., 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. The association towards the Ministry of Health.

“But in practice, the acquiring company now owns a property in which NIS 9.6 million 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 requests the court to oblige the defendants, jointly and severally, to return and / or compensate the state in the cumulative amount of NIS 16.2 million.

The lawsuit states that “in the sale of the land, the association effectively blocked the possibility of fulfilling its obligations in the establishment agreement, while illegally sweeping huge sums in its pocket. .

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 request and imposed temporary foreclosure orders on the defendants’ assets.

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

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