The newly appointed chairman of Channel 10's board of directors drew fire on Tuesday after he allegedly made disparaging remarks about Israelis of Middle Eastern descent. Rami Sadan, who was only named to the position on Monday, reportedly told the board of directors that "like the rest of you in the elite, I also hate Shas and that thief [Shas leader Aryeh] Deri, but we have to appeal to that audience, we have to appeal to Massouda from Sderot." "Massouda from Sderot" is a stereotype referring to a person of Mizrahi descent living in Israel's periphery. Sadan denied making the remarks, saying, "This never happened. The names Shas and Aryeh Deri never came up in the meeting. People are concerned by my appointment. They find it hard to deal with a religious man, someone who is proud to be from Gush Etzion and the Jewish Quarter [in Jerusalem's Old City], someone who doesn't represent the so-called mainstream. They are trying to drive a wedge within the religious sector. How can you hate an entire public-" Channel 10 News CEO Golan Yochpaz said Sadan had made the derogatory remarks. "Let's be clear: Rami Sadan told me and the members of the board, 'I hate Shas and Deri just like you in the elite,'" he tweeted. Yochpaz stressed the members of the board immediately interrupted and criticized Sadan, saying that "any other description [of the meeting] is a distortion of the truth." A statement by Channel 10 said, "We wish to clarify that Mr. Rami Sadan's remarks were interrupted immediately and those present at the meeting stated they found his remarks unacceptable. Channel 10, its employees and journalists find Sadan's remarks, made as part of a rundown of his worldview to the board, utterly unacceptable." Sadan, a former Knesset lobbyist and public relations executive, is known for having close ties with Prime Minister Benjamin Netanyahu. His confirmation as chairman of Channel 10's board of directors was widely criticized as a political appointment. According to Army Radio, the Second Authority for Television and Radio, which oversees Israel's commercial and cable television channels, launched in inquiry into the incident and, after discussing the matter with several board members, concluded that Sadan had not made the contentious remarks. The regulatory body said it would review the matter further, to determine if any other measures should be pursued. A top Shas official said the party "rejects the Second Authority's findings outright. ... We believe Golan Yochpaz and Channel 10's statement, and we don't think the Second Authority's review is credible." Infuriated by Sadan's remarks, Shas on Tuesday filed a motion with the Attorney General's Office calling for Sadan's immediate dismissal. The party threatened a coalition crisis unless Sadan was fired. "Until this is done, Shas MKs will not attend committee meetings or vote with the coalition," one Shas MK said. Deri is expected to meet with Coalition Chairman MK David Bitan (Likud) later on Wednesday, in an effort to avoid a coalition crisis. Taking to Facebook, Deri wrote, "There's racism in Israel in 2016, and there's contempt toward the Mizrahi public. There are some in Israel in 2016 who allow themselves to patronize an entire community in Israel. Shas voters are not redundant. They are hundreds of thousands of people, who decided to band together and raise their heads to eradicate phenomena the likes of Rami Sadan. We are here to stay and we will not tolerate such remarks." Later on Tuesday, Deri said he spoke with Prime Minister Benjamin Netanyahu, and informed him that "Shas will not abide such racism and bigotry." Netanyahu, who was updated on the matter while on an official visit to Russia, said, "First and foremost, we have to get to the bottom of this issue and find out what, if anything, was said. Sadan denied making these remarks, but if it turns out they were made that would be very serious. He would have to recant his words and apologize." Commenting on the contradictory versions of what transpired in the meeting, Religious Services Minister David Azoulay (Shas) said Wednesday, "Where there's smoke there's fire, and something was obviously said, one way or another, and it's a very serious thing. Rami Sadan should give back the keys to his office and go home. There will be no compromise on this issue, and there's no other solution." Kulanu leader Moshe Kahlon criticized Sadan, saying, "If these things were, in fact, said, than it's regrettable and unfortunate, and Minister Deri and Shas voters deserve an apology. If Sadan fails to apologize, we'll have to go back and review his appointment. I urge all public officials -- there are enough rifts in Israeli society and there's no need to aggravate the situation." Culture and Sport Minister Miri Regev slammed the "ignorant and racist nature" of Sadan's alleged remarks. "Massouda from Sderot is the grandmother of Yoav, Jonathan, and Dana, who were raised to love Israel, to join the IDF, and to contribute to this country -- not to be racist. It's sad to see how some people promote racist policies. I call on Channel 10 to apologize to the viewers," she said. Zionist Union MK Shelly Yachimovich lambasted Sadan as a "miserable, pathetic racist, who hates Massouda but needs her." A statement by Meretz said, "If there is any truth to these statements, Sadan cannot hold public office."