Israel Police arrested several senior officials from the Histadrut labor federation in Tel Aviv on Monday, including chairman Arnon Bar-David, on suspicion of bribery, fraud and breach of trust, money laundering, and tax offenses. Bar-David’s detention was extended for another eight days.
The Histadrut is the umbrella organization of Israeli labor unions. It represents roughly 800,000 members, including public-sector employees, municipal workers, and employees from various industries and unions.
The two-year undercover investigation centers on senior figures in the Histadrut, local municipalities, and government-owned companies, suspected of accepting bribes and other benefits from businesspeople in return for promoting their interests and securing financial advantages, said police.
Reportedly, among the officials detained were those connected to the municipalities of Rishon Lezion, Harish, Kiryat Bialik, Rosh Ha’ayin, and Ashdod, as well as from El Al, Israel Railways, Keren Kayemeth LeIsrael-Jewish National Fund, and the Wingate Institute.
A police representative at the detention extension hearing for Bar-David on Monday said that over 300 people are expected to be interrogated. Explaining the need to extend Bar-David’s remand, the representative said, “This is a person connected to public officials, businesspeople, and others, and upon his release there is concern that he may attempt to influence witnesses. It is possible that additional actions will later emerge that will be investigated in relation to the suspect.”
Bar-David among suspects set for remand hearings
Businessman and insurance agent Ezra Gabbai was arrested, and his detention was extended by the Rishon Lezion Magistrate’s Court on Monday for another week. He is suspected of corruption in the Histadrut, corporations, government companies, and local authorities.
The detention of Bar-David’s wife, Hila Kinster Bar-David, was extended until Monday as well.
The case is being followed by the State Attorney’s Office.
Bar-David, who also operates a large insurance company, is suspected of arranging appointments to senior positions in exchange for the transfer of clients from municipalities, government companies, and public bodies to his firm. Police said the case involves an alleged “give and take” system of illicit job placements and financial favors.
“After nearly two years of covert work, the investigation has entered its open phase. Evidence so far exposes serious suspicions of offenses harming public integrity, allegedly committed by officials in the public sector and the Israeli economy.
The emerging picture shows a ‘give-and-take’ relationship between business interests and public officials. Lahav 433 will continue to lead a determined, professional, and values-based fight against public corruption,” said Lahav 433 Commander Asst.-Ch. Meni Benjamin.
The Histadrut said in response that it is “confident in the innocence of our staff,” and that it is cooperating in the investigation.
It added that the Histadrut’s public services are continuing as scheduled despite the investigation.
Jerusalem Post Staff contributed to this report.