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Zman Tel Aviv:Motion agains the city of Tel Aviv: Construction company removed from a tender because owners testified against a city official in the past

October 27, 2010
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Zman Tel Aviv:Motion agains the city of Tel Aviv: Construction company removed from a tender because owners testified against a city official in the past
(Hebrew Only)

Petition against Tel Aviv Municipality: A construction company was deprived of a tender in which it won due to the testimony of its previous owner against a senior municipal official

Roi Tzaig

Did the municipality topple in a construction company tender just because in 2012 its owners testified a senior carpenter in the municipality? At least that is what the company claims in a petition filed several months ago, through the law firm Afik-Turgeman. According to the petition, which recently reached the summary stage, AG Algar Engineering was excluded from a tender it won following the testimony of its owners, Elkem Shulman and Gregory Portnov, against a director in the engineering department of the Tel Aviv Municipality.

About five months ago, it was reported in "Zaman Tel Aviv" that a lawsuit against the municipality was being filed for ILS 12 million by the contractor Shmuel Michel, the owner of the "Yishai Towers" company ("I collapsed because! Tel Aviv Municipality", May 28, 2010). According to the lawsuit, the Yishai Towers company was discriminated against in tenders because Michelle complained to the city inspector about alleged corruption by the same manager. Following the complaint, the police opened a lawsuit against the same manager, but the case was closed for lack of evidence.

Those summoned to testify in the same case were Shulman and Portnov, who were then municipal employees. According to the petition, as part of the construction company they set up after leaving their job at the municipality, they submitted a bid for a tender to carry out work on behalf of the municipality. The bid they submitted came in second place out of four winning contractors, between whom the works were to be divided. However, after the tender, the company's bid was rejected by the tenders' subcommittee due to a disciplinary complaint filed against them in the past, after they did not report to the municipality the 15 hours they were absent from work. The petition states that the two were returned to work after a disciplinary proceeding was conducted against them and that the company they own still performs work in other departments of the municipality.

According to the two, as stated in the petition, the real reason for the negligence of the tender is their previous testimony against the same director in the engineering department, who was also present at the subcommittee that recommended the winners to the tenders committee.

AG Algar Engineering is now demanding that the Tel Aviv Municipality declare the company beaten in a tender and compensate its owners for the work that the company was disqualified from performing. "The conduct of the tenders committee was flawed," noted Adv. Yair Alani, "which indicates hidden motives."

The Tel Aviv Municipality responded: "The credibility of the companies participating in the tender and past experience with them are part of the municipality's considerations in a municipal tender. In the present case, the directors of the petitioner company were previously convicted while working for the municipality for fraud and false reporting, and therefore their participation in the tender was disqualified. Contrary to the allegation, the petitioner is not employed by the municipality, but by the Educational Institutions Company and that although the senior participated in the subcommittee hearings appointed by the tenders committee, due to his role relevant to the hearing, he was not present at all during the tenders committee hearing. Therefore, no effect can be attributed to it

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