This big dispute between Dergel Hatorah and Shas began with the situation in Elad. Before the previous elections, Shas and Degel signed an agreement that Shas would support Degel's candidate (Yisrael Pindrus) and in the upcoming elections Degel would support Shas's candidate (Yehuda Butbol).  Shas kept their side and supported Pindrus for mayor of Elad. Pindrus got disqualified for technical reasons (it was determined he did not live in the city as required), and the incumbent Yisrael Porush won another term. Now Shas wants Degel to support their candidate but Degel is saying no. They are making excuses why they dont have to (Pindrus didnt win, Shas didnt do enough, etc) and Shas is saying it is not our fault he was disqualified, that was your problem for not making sure everything was kosher, we kept our side of the deal, now keep your side.

that fight in Elad has led to a breaking down of the Haredi agreements and general working relations) in other Haredi cities (including Bet Shemesh).

So last night Rav Landau issued a letter relating to the issue. In Degel right now, Rav Landau's word is the final word and this is now Degel's official position on the matter.

Rav Landau says that the issue of the mayorship is not specific to a party but is fore the good of Jewish issues, education, keeping the torah and mitzvos and everything that entails. Therefore all agreements that were signed between different parties have no value and obligate no one. Making anything dependent on specific sects and groups is doing a disservice....

So, if Degel believes that agreements do not need to be kept, nobody will any longer make agreements with Degel. Right now they agree to something because that is good for them but tomorrow they will not keep it because yesterday's concern is no longer relevant and they don't feel obligated by it.

Another point is that this shows very nicely, in my opinion, why many do not like Degel Hatorah. There is a certain haughtiness in their approach that only they can decide what is good for Judaism, for torah and education. Is Shas or Aguda any less frum than Degel? Even without getting into other streams and approaches being able to have a voice - just within Haredi Judaism, Degel feels they can break agreements because Shas (or anyone else) cannot be relied upon for what is good for Judaism and only Degel can be the arbiter of that. It might be just me, but I think this approach upsets many people.