Police arrest top Histadrut, municipal officials in sweeping corruption probe

Raids target 12 government authorities and six municipalities as part of two-year undercover investigation.

By Batya Jerenberg, World Israel News

A two-year covert police investigation culminated Monday in the simultaneous arrest or detention of dozens of senior Histadrut Labor Federation figures, public officials and top businessmen on suspicion of committing massive corruption offenses throughout the country.

Municipal officials detained for questioning included those from big cities such as Rishon Lezion and Ashdod, as well as smaller ones including Harish and Rosh Ha’ayin. One is a current mayor, and another a former city head.

In all, 52 homes and offices in 12 government authorities, six local authorities and five corporations were raided.

The suspects’ alleged misdeeds include bribery, breach of trust, money laundering, and tax offenses.

According to Hebrew media reports, a senior executive of a large insurance company who was very close to Histadrut Chairman Arnon Bar-David appointed people to jobs as heads of worker committees in local authorities and in government companies, where he made sure that many became board members.

He also allegedly offered established figures in those worker committees key positions in government-linked entities such as El Al, Israel Railways and Keren Kayemeth LeIsrael-Jewish National Fund.

In return, police allege, he received the insurance business of the employees in the affected municipalities and government corporations, which was worth millions of shekels.

Both the businessman and his son were among those arrested Monday.

The Jerusalem Post reported that Bar-David, who “operates a large insurance company,” is the one suspected of “arranging appointments to senior positions in exchange for the transfer of clients from municipalities, government companies and public bodies to his firm.”

Bar-David and his wife were also arrested in the morning raid.

These arrests are expected to be only the tip of the iceberg, as about 350 members of various workers’ committees will reportedly be questioned in the coming days and weeks about their alleged involvement in the schemes.

“This is one of the most serious cases we have ever seen,” commented Police Commissioner Danny Levy after the raids, vowing, “We will act decisively and without fear of investigating senior figures in order to get to the truth.”

“We are confident in the innocence of our people and are cooperating with law enforcement authorities. Naturally, we cannot comment on ongoing proceedings,” said Histadrut spokesperson Yaniv Levy.