Serious corruption in Israel’s national labor federation: Police detain dozens of senior officials

Police raided the offices of the Histadrut (Israel’s national labor federation) on Monday, amid a wave of arrests of senior officials in the organization and other key figures in the economy as part of a major corruption case.

Histadrut chairman Arnon Bar-David was detained along with his partner.

The raid began around 6:00 a.m. this morning (Monday) and targeted offices of the Histadrut, government corporations, municipalities, and 55 private homes.

As part of the operation, investigators from Lahav 433's ("Israel's FBI") anti-corruption unit arrested eight suspects and detained another 27 for questioning – including two mayors and other senior officials in local authorities.

The undercover investigation, which lasted two years, led to the detention of officials in the municipalities of Rishon Lezion, Harish, Kiryat Bialik, Rosh HaAyin, and Ashdod. Senior officials were also detained at KKL (Jewish National Fund), the Wingate Institute, El Al Airlines, and Israel Railways.

An additional 350 people are expected to be questioned as part of the affair.

Suspicion: 'Give and take' between Histadrut executives and businessman

At the heart of the case is an alleged “give and take” system between senior Histadrut officials and a businessman. According to suspicions, clients who hired the businessman’s services received lucrative positions in local authorities and corporations in exchange for financial benefits given to senior figures in the Histadrut.

The method allegedly involved the businessman, who is an insurance agent, maintaining bribery relationships with Histadrut executives and labor union heads.

In return for favors such as travel abroad, senior appointments, and luxury gifts, he gained control over job placements in municipal corporations, local councils, and government companies. In exchange, these entities purchased insurance services from his company, funneling large sums back into his business.

Lahav 433 Commander, Deputy Commissioner Meni Benjamin, stated this morning after the case became public, “This is a covert investigation that lasted about two years, during which suspicions of integrity offenses were uncovered – allegedly committed by public officials and business figures in Israel. So far, the investigation reveals a ‘give and take’ relationship between businessmen and public-sector officials."

"The investigation is ongoing, and more suspects are expected to be questioned in the coming days. It is supervised by the Economic Department of the State Attorney’s Office.”

Deputy Commissioner Yossi Gazit, head of Lahav 433’s Northern Fraud Unit, told Kan Radio’s Roi Sharon and Assaf Lieberman, “The businessman is an insurance agent who turned the Histadrut into his playground. He earned a lot of money per head. He bribed public figures in various ways – foreign trips, senior positions, champagne – you name it.”

He added, “This is a case involving money laundering, bribery, and public officials betraying their duty. At first, it seemed unbelievable, but as we deepened the investigation and used advanced technological means, a sad and extensive picture of corruption emerged.”