New Corruption Probe Targets Municipal Official in Histadrut Bribery Scandal

An investigation into a new sub-affair within the broader "Handshake" corruption case has led to the questioning of a senior official in a central Israeli municipality. The official is suspected of receiving bribes from an insurance agent previously investigated in the case. Police from the National Fraud Investigation Unit (LAHAV 433) detained the official on Sunday morning, searched his home and municipal office, and seized documents and digital media. Other individuals involved have also been summoned for questioning.

The "Handshake" affair initially broke in early November of last year, when police arrested senior figures within the Histadrut labor federation, including its chairman and his wife, on suspicion of bribery, fraud, breach of trust, money laundering, and tax offenses. Union leaders nationwide, including the chairman of the Israel Railways workers' committee, were also arrested, as were the deputy chairman of the Histadrut and the chairman of the El Al airlines' workers' committee. The mayors of Harish and Kiryat Gat were also detained for questioning.

Approximately three months ago, police announced the seizure of tens of millions of shekels from the accounts of the insurance company Menora and some of its senior executives. Ninety-three million shekels were frozen in the company's accounts, and an additional 90 million shekels were seized from the personal accounts of its executives.

One of the sub-affairs under investigation involves a public company that allegedly promoted the signing and renewal of a drug insurance policy within the General Histadrut. The company is suspected of providing benefits and payments to the central suspect, insurance agent Ezra Gabai, leveraging his influence with Histadrut Chairman Arnon Bar-David to facilitate the policy's promotion and renewal, thereby increasing company profits.

Menora Mivtachim stated that apart from the freezing of funds, they are unaware of any significant further developments concerning the company, and this action does not affect its ongoing operations. The company pledged continued cooperation with the investigation.