Temporary foreclosure on the assets of the “Medicine and Salvation” association, which did not fulfill its commitment to establish a front emergency room in Ashdod

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The Southern District Attorney’s Office, on behalf of the Ministry of Health, filed a lawsuit in the District Court of Jerusalem against the “Medical and Salvation Association” and MCIMRC Holdings 2014 Ltd., in which it sought to charge 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.

The prosecution’s case concerns a demand for the return of public funds that the state transferred to an association for the establishment and operation of a center for providing immediate medical services in Ashdod – a medical center that has not been established and to this day stands a white double near Assuta Hospital in the city.

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 eventually even increased the construction and sale of the land and the building it began to build there to Defendant 2 – MCIMIRC – 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 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, while 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. To 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 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.

However, in practice, the acquiring company now owns a property in which NIS 9,600,000 of public funds were 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 order the defendants, jointly and severally, to repay and / or compensate the State in the cumulative amount of NIS 16,279,206.

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 a huge amount of capital, and yet, boldly, the association continues to hold the support funds and refuses to return them to the state treasury.”

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 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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