Over 25 Israel Railway employees arrested on corruption charges

Police: Undercover investigation concludes members of railway’s Sanitation Division stole ‘tens of millions’ of shekels through bribery, money laundering, false billing and tax evasion.

By
September 2, 2014 20:37
1 minute read.
Train

Israel train. (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

A large-scale police undercover corruption investigation into Israel Railways sanitation division, in coordination with the Israel Tax Authority, concluded on Tuesday morning with the arrest of over 25 managers and supervisors.

According to the police’s economic crime unit Lahav 443, the investigation – conducted with the full cooperation of Israel Railways CEO, Boaz Zafrir – determined that the sanitation employees colluded for months to commit bribery, money laundering, fraud, and tax offenses totaling “tens of millions” of shekels.

Be the first to know - Join our Facebook page.


In a statement, police said the investigation was launched after suspicions were raised that a number of sanitary inspectors for the railway falsified inspection reports and vastly overcharged or bribed third-party contractors that the railway hired.

Additionally, a number of the suspects arrested are accused of “creating a systematic mechanism for inflated invoicing,” involving fictitious companies that allegedly provided cleaning services and manpower that was funneled into a fake account.

“This morning over 25 employees were questioned and arrested following dozens of raids into their homes and offices,” a police spokesman said, adding that all the suspects were arraigned at Rishon Lezion Magistrate’s Court later that afternoon.

In response to the arrests, an Israel Railways spokesman stressed that Zafrir, who ordered an internal audit and examination of relationships with railway contractors at the beginning of 2013, initiated the investigation.

“Israel Railways is making every effort to maintain integrity and good governance, and denounces all conduct that is not within the framework of the law,” a statement from the company said.



Israel Railways, which is state-owned and based in Tel Aviv, is responsible for all commuter, inter-city and freight rail transport and inspections to and from the country.

Related Content

THE BEAUTIFUL vineyard at Kir-YiannI
July 18, 2018
Wine Talk: First family of Greek wine

By ADAM MONTEFIORE