The Israel Land Administration (ILA) announced the winner of a tender for a development contract to establish a winery hear Moshav Aderet. Vineyards - Maintenance and Management (Adulam) Ltd. bid $516,000. Allegations have been made that the ILA tailored the tender for the winning company, controlled by the Safra family.
The allegations are based on the fact that the land is located near the land of Moshav Aderet in the Adulam area, which leases the land for vineyards. The detractors also claim that the ILA tried to minimize exposure of the tender, publishing the details on the ILA website, describing it as low density construction in Moshav Aderet, instead of as a vineyard.
Legal sources believe that the ILA shut its eyes. It allowed Aderet to lease the land in violation of ILA resolutions that unused land should revert to the ILA. The ILA also charged members of Aderet annual rent of NIS 700 per farm per year, including a farmhouse, allowing the residents to trade in the land and water rights at much higher prices.
The ILA said in response that this was a public tender open to everyone, and that anyone meeting the tender's terms could bid.
The land in the tender is 35 dunam (8.75 acres), of which 25 dunam (6.25 acres) is zoned for vineyards and orchards, and ten dunam (2.5 acres) for buildings. The ILA assessed the value of the lot at $212,000, not including development costs and VAT, and set the minimum bid at $96,000. Vineyards - Maintenance and Management (Adulam) paid more than double the assessor's valuation.
Published by Globes [online], Israel business news - www.globes.co.il - on March 27, 2005