Best Group Investigation Reveals 2.2 Million Shekels Misused for Private Work of Controlling Shareholders
An internal investigation at Best Group uncovered serious financial irregularities involving approximately 2.2 million shekels. The funds, belonging to a subsidiary, were used to pay for private work on properties owned by the controlling shareholders and their relatives without charging them. This discovery significantly expands on earlier reports and emerged shortly after Best, controlled by the Tanus family, became a publicly traded company on June 3, 2025.
According to a draft report, between September 2025 and June 2026, the subsidiary paid about 2.195 million shekels, including VAT, to subcontractors for private property work benefiting the controlling shareholders. These shareholders were not billed at the time, and with interest, the total reached approximately 2.286 million shekels. Best stated that the controlling shareholders have since reimbursed the full amount. The company has not detailed how the funds were diverted or transferred to the shareholders or their relatives.
The investigation also examined other projects to determine if these were isolated incidents. It found that payments of about 2.2 million shekels made through a subcontractor to third parties outside the project were actually used for the project but violated company procedures. Additionally, around 100,000 shekels from another project were improperly paid to a third party, also against company rules.
The probe is ongoing, with auditors reviewing suspicions of further irregularities involving about one million shekels. Best aims to complete the investigation before releasing its second-quarter financial reports. Due to the findings, the company classified the issue as a material error and plans to restate its 2025 and first-quarter 2026 financial statements, expecting a net profit increase of roughly 310,000 shekels for 2025 and 468,000 shekels for Q1 2026.
This controversy arises amid a sensitive corporate governance phase for Best, which has yet to appoint external directors, establish an audit committee, or legally appoint an internal auditor. Currently, the chairman of the board is the only non-controlling director involved in the investigation, though he was appointed by the controlling shareholders. The final investigation report will be presented to the audit committee once it is formed.
