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2 Israeli tech firms to pull funds out of the country, citing risk posed by Netanyahu government
(JTA) — The Israeli founder of an international payroll company that provides services to Toyota and Microsoft has announced that she will move her company’s money out of Israel over concerns about its new right-wing government.
Eynat Guez, a co-founder and CEO of Papaya Global, which was valued at $3.7 billion in 2021, made the announcement Thursday on Twitter. Her announcement came the morning after Israeli Prime Minister Benjamin Netanyahu defended his government’s proposed judiciary reforms and after weeks of mounting warnings, from within Israel and abroad, that the reforms could harm Israel’s credit rating. Netanyahu dismissed those warnings on Wednesday as overblown.
“Following Prime Minister Netanyahu’s statements that he is determined to pass reforms that will harm democracy and the economy, we made a business decision at Papaya Global to withdraw all of the company’s funds from Israel,” Guez tweeted on Thursday morning. “In the emerging reform, there is no certainty that we can conduct international economic activity from Israel. This is a painful but necessary business step.”
Guez has emerged as a leader within Israel’s vaunted tech sector in protests against the new government, speaking at a rally of tech workers in Tel Aviv that took place last weekend amid protests around the country. The rallies are largely focused on the governing coalition’s judiciary proposals, including legislation that would allow the Knesset, Israel’s parliament, to overrule Supreme Court decisions.
In her speech, Guez said she had been encouraged to raise money for Papaya Global from the United States, a common step for Israeli firms, but had resisted because she wanted to live in Israel and raise her children there, the way her parents had after immigrating from their birthplaces in Morocco and Tunisia.
She also noted that $54 billion in capital from abroad had been invested in Israeli companies in the past three years. “Without a democracy, we’d never have these $54 billion,” she said. “And not the tens of thousands of employees who joined the high-tech sector in recent years.”
Guez said foreign investors had been calling with concern about whether Israel’s democracy was crumbling. “Just like in Brazil, Venezuela and Hungary, no leading investor or financial institute will let his billions stay in a country with a crumbling democracy,” she said. She added, “Let’s say this loud and clear: Startup Nation without a democracy cannot stand.”
A second, smaller Israeli tech company is also moving its bank accounts out of Israel, according to the Israeli tech publication Calcalist. The firm, Disruptive AI, raises money for artificial intelligence startups and manages $250 million in funds.
Guez did not further explain Papaya’s business decision on Thursday and how it would affect the company or its employees. The company, which says it manages more than $3 billion in payroll for companies in 160 countries, entered the ranks of Israel’s “unicorn” tech firms in early 2021, meaning that it was valued at over $1 billion. It raised $250 million against a valuation of $3.7 billion later that year.
Israel’s tech sector has been experiencing the same downturn as the global tech sector, in which sweeping layoffs have been taking place in recent weeks. Last year was the worst since 2014 for the number of Israeli companies being acquired or going public.
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Candidate who vowed to imprison ‘American Zionists’ loses in Texas runoff
(JTA) — Sheriff’s deputy Johnny Garcia won the Democratic nomination Tuesday in Texas’ 35th Congressional District, defeating opponent Maureen Galindo following a race shaped by scrutiny over Galindo’s antisemitic rhetoric.
The runoff in the San Antonio race drew national attention after Galindo, a local housing activist and therapist, came under scrutiny for comments that included vows to turn a local immigrant detention center “into a prison for American Zionists” and claims that it was her “perception that Zionist billionaires run the world.”
Following Galindo’s surprise first-place finish in the march primary, national Democratic leaders and Jewish organizations condemned her rhetoric and urged voters to reject her candidacy, including Texas Senate candidate James Talarico, who revealed to JTA earlier this month that he would not back or campaign with Galindo.
The district, which stretches between San Antonio and Austin, was heavily affected by Republican redistricting this year, one of several factors that local political observers and Democratic Party leaders said contributed to Galindo’s earlier win.
The race also attracted outside spending, with Lead Left PAC, a newly launched super PAC apparently tied to a Republican donation platform, pouring over $900,000 on ads and mailers promoting Galindo. Last week, the Democratic Congressional Campaign Committee launched a $35,000 ad buy against Galindo, an unusual step for the DCCC to take against a Democratic candidate.
“Republicans just spent weeks and almost a million dollars propping up an antisemite, and they should be ashamed and embarrassed — it was a disgrace,” the president of the Democratic Majority For Israel PAC, Brian Romick, told JTA in a statement. “Tonight is a victory for the voters of TX-35, for the Democratic Party, and for every Democrat who believes that antisemitism has no home in our coalition.”
Romick told JTA Tuesday night that he believed the results of the runoff signaled that Democratic primary voters “aren’t going to elect antisemitic candidates, and in the districts that we need to win, pro-Israel candidates are our best bet.”
Garcia will now face Republican nominee Carlos De La Cruz, who defeated opponent John Lujan, in the Nov. 3 general election.
This article originally appeared on JTA.org.
The post Candidate who vowed to imprison ‘American Zionists’ loses in Texas runoff appeared first on The Forward.
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Ukraine reburies Nazi collaborator with state honors, drawing Israeli condemnation
(JTA) — Israel criticized Ukraine Monday after President Volodymyr Zelensky gave full state honors to a Ukrainian nationalist leader who was part of a movement that collaborated with the Nazis during World War II.
During a reburial ceremony on Sunday, Zelensky described Andriy Melnyk and his wife, Sofia Fedak-Melnyk, as “iconic Ukrainians of the 20th century who are deeply respected,” according to The New York Times.
Melnyk led one of the factions of the Organization of Ukrainian Nationalists during its collaboration with Nazi Germany during World War II. Though the Ukrainian organization shared a mutual opposition to Soviet rule with the Nazis, it also promoted antisemitic rhetoric and some of its members participated in the persecution of Jews during the Holocaust. Melnyk initially sought cooperation with Nazi Germany but was later detained by the Nazis as relations with Ukrainian nationalist groups deteriorated.
The ceremony marked the latest flashpoint in a longstanding dispute over Ukraine’s commemoration of World War II-era nationalist figures linked to Nazi collaboration. In 2018, the country designated the birthday of Nazi collaborator Stepan Bandera as a holiday, and in 2017, a statue was unveiled honoring a nationalist leader whose regime killed tens of thousands of Jews in pogroms during the Russian Revolution.
The remains of Melnyk and his wife were exhumed from Luxembourg last week and then transported to Ukraine for reburial at Kyiv’s National Military Memorial, which opened last year for soldiers killed in Russia’s invasion of Ukraine.
“Glory to every Ukrainian hero! Glory to all our Ukrainian warriors! Glory to our people!,” Zelensky, who is Jewish, wrote in a post on X marking the ceremony, adding that he was “grateful to everyone who has worked to make such returns of great Ukrainian figures possible and to give the Ukrainian People their own pantheon of heroes.”
The reburial was quickly decried by Yad Vashem, Israel’s Holocaust memorial, which wrote in a post on X that it was “deeply troubled by such national commemorations, which come at the expense of historical truth and the memory of Holocaust victims.”
“Honoring the leader of a movement that supported and collaborated with Nazi Germany during the persecution and murder of millions of Jews undermines the moral integrity essential to Holocaust remembrance,” the post read.
Israel’s Foreign Ministry wrote on X that there is “no place for ignoring historical truth and the memory of the victims murdered by the Nazis and their collaborators.”
The post Ukraine reburies Nazi collaborator with state honors, drawing Israeli condemnation appeared first on The Forward.
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Trump administration again sues UCLA over antisemitism, alleging ‘hostile educational environment’
(JTA) — The U.S. Department of Justice sued the University of California for the second time this year over allegations of an antisemitic campus environment at UCLA, claiming the school “was deliberately indifferent to the suffering of its Jewish and Israeli students” after Oct. 7.
The federal lawsuit, filed Tuesday, claims UCLA violated the students’ civil rights by failing to intervene during pro-Palestinian encampment activity in early 2024. It follows an earlier suit that focused on the university’s treatment of its Jewish and Israeli employees, and comes 10 days after the university unveiled its own “Initiative to Combat Antisemitism.”
“Earlier this year, we sued UCLA for subjecting its Jewish and Israeli employees to an antisemitic hostile work environment,” assistant U.S. attorney general Harmeet Dhillon said in a press release. “Now, the Department of Justice calls UCLA to account for its toleration of the equally appalling hostile educational environment against its Jewish and Israeli students.”
Requests for comment to the Justice Department and UCLA were not immediately returned.
The new suit draws on widely reported accounts of UCLA’s campus environment in spring 2024, when protesters in pro-Palestinian encampments clashed with pro-Israel counter-protesters, sparking violence and turmoil. The failure to protect Jewish students violated their Title VI civil rights, attorneys said.
Citing the report of UCLA’s own task force on antisemitism, published in response to the 2024 campus upheaval, the suit states, “UCLA’s leadership apparently preferred a do-nothing ‘de-escalation strategy’ to protecting their Jewish and Israeli students from an angry mob organized by peers armed with tasers, lumber, and a sword.”
The Justice Department is seeking several redress measures, including the return of all federal grants made to UCLA “during the time of UCLA’s noncompliance with Title VI.” The school had previously resolved several Title VI antisemitism cases under the Biden administration, and also reached a $6.13 million settlement with Jewish groups in a private suit related to the spring 2024 incidents on campus — a case cited in DOJ’s new lawsuit.
The Trump administration has sought to make a particular example of UCLA in its aggressive approach to campus antisemitism. Officials had sought to levy fines in excess of $1 billion against the public university for its alleged failure to protect Jewish and Israeli students, until a federal judge intervened. Several DOJ lawyers have left the department over its UCLA investigation, telling reporters the case was “fraudulent,” a “sham” and driven by pressure to “find” evidence to support further legal action against UCLA.
In addition, some of the most violent clashes on the campuses included perpetrators on both sides of the conflict, leading some members of the UCLA Jewish community to complain that pro-Israel counter-protesters ultimately undercut the Jewish students’ legitimate grievances regarding the harassment they had been facing inside the campus gates.
And the campus environment for Jews remains tense. Last month, the UCLA student senate condemned a campus visit by a freed Israeli hostage, drawing blowback from a university regent.
The post Trump administration again sues UCLA over antisemitism, alleging ‘hostile educational environment’ appeared first on The Forward.
