Ministry of Transport vs. carriers and a lawsuit for 35 million shekels: chronicle of the scandal

15 Israeli bus companies filed a lawsuit against the Ministry of Transport for 34.7 million shekels over illegally withheld funds, but withdrew it the next day after the state's ultimatum regarding inspections and revocation of subcontracting permits. The conflict revolves around a system of fines that carriers claim were retroactively changed.

15 Israeli bus companies filed a lawsuit against the Ministry of Transport for 34.7 million shekels, alleging that the ministry illegally withheld funds under a strict fine system. The carriers claim that the Ministry retroactively changed the application of contractual penalties: for the same violation, such as failing to stop at a bus stop, the fine could be 10,000 shekels instead of the 1,000 stipulated in the contract. However, the next day, the companies withdrew the lawsuit after the state issued an ultimatum, threatening large-scale inspections and the revocation of subcontracting permits starting October 4. The National Public Transport Authority states that the increased oversight targets 'fictitious trips,' where electronics record a route but drivers cut corners. A separate contentious point involves fines for delays due to road accidents, closures, and protests, with companies complaining about stricter controls since 2024. No court ruling on the merits has been issued, and tensions remain.