Lev Leviev's firm is now building six projects in the capital, in which it has invested over NIS 500 million, but has not managed to finish or sell them. The new mayor Nir Barkat and city administration have been creating problems for Africa Israel. City hall is not willing to rubber-stamp every building plan presented, and has been demanding that developers moderate their plans.
In recent years Africa Israel has bought land in Jerusalem, putting its faith in what was a rapidly expanding real estate market with prices climbing. It also put its faith in the previous, ultra-Orthodox mayor, Uri Lupolianski. The former mayor had appointed Leviev to head his economic team for developing the capital.
In addition, two senior city council members who also served as deputy mayors also happened to be Africa Israel board members: Shmuel Shkedy, the deputy head of the municipal planning commission and Eli Simchayof, chairman of the municipality's finance committee. The chairman of the municipal planning commission under Lupolianski, Yehoshua Pollak, also worked actively to help real estate developers.
