Victory for Jerusalem Municipality: 11 Million Shekels to Be Seized from UNRWA Account

The Jerusalem District Court rejected UNRWA's immunity claims and ordered Bank Leumi to transfer approximately 11 million shekels to the Jerusalem Municipality for property tax debts. Judge Haya Zandberg ruled that the immunity expired with the cancellation of the fee exchange agreement, and that the agency did not appeal the charges in time.

The Jerusalem District Court rejected the immunity claims of the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) and ordered Bank Leumi to execute a seizure on the agency's bank account and transfer approximately 11 million shekels to the Jerusalem Municipality for property tax debts. Judge Haya Zandberg ruled that the immunity enjoyed by UNRWA expired with the cancellation of the "fee exchange" agreement from 1967, which ended by law on October 7, 2024. At the center of the dispute are two compounds held by UNRWA in Jerusalem: an office and warehouse complex in the Ma'alot Dafna neighborhood and a school in Tzur Baher. The legal proceedings began in February 2024, when Bank Leumi blocked UNRWA's account due to concerns that the funds were being used for terrorist purposes. In August 2025, a seizure order was placed on the bank account for a debt of 11,056,426.94 shekels. The court determined that UNRWA cannot challenge the property tax charges within the framework of the proceedings initiated by the bank, after it failed to act against them through the legal channels prescribed by law. It was further ruled that Israel's international obligations do not override an explicit law passed by the Knesset. The CEO of the "Betzalmo" organization, Shai Glick, welcomed the decision, stating that it is a legal and moral victory.