Senior Municipal Official Investigated in "Handshake" Bribery Scandal

A senior official in a central Israeli municipality was detained for investigation on Sunday on suspicion of bribery offenses related to the "Handshake" affair, a corruption case involving the Histadrut labor federation. The official is suspected of acting in concert with an insurance agent, Ezra Gabbay, who is also implicated alongside Histadrut Chairman Arnon Bar-David in the wider scandal. This latest development is part of an ongoing investigation by the Lahav 433 anti-corruption unit.

Investigators searched the official's home and municipal office, seizing documents and digital media. Additional individuals have been summoned for questioning. To date, ten suspects have been investigated in the "Handshake" case, with hundreds of testimonies collected. Separately, Idan David, former chairman of Netivei Ayalon, is under investigation for breach of trust and forgery.

The "Handshake" affair first came to light in November with a significant wave of arrests, including Bar-David and Gabbay, as well as senior figures from the Menora Mivtachim insurance group. The investigation centers on allegations that Gabbay, an insurance agent, received substantial payments to influence Bar-David to promote and renew health insurance policies for hundreds of thousands of Histadrut members with Menora Mivtachim, even when these policies were not necessarily beneficial to the insured. Police consider Gabbay's involvement in the agreement between Menora and the Histadrut, facilitated by his connection to Bar-David, to be highly suspicious, suggesting he acted as a "broker" rather than a legitimate agent.

Authorities estimate that these policies generated tens of millions of shekels for Menora and millions for Gabbay, allegedly without him performing legitimate work to earn these sums. The investigation also froze accounts belonging to Menora Mivtachim executives and the company itself, totaling approximately 90 million shekels. Police believe the large-scale affair encompasses several sub-scandals. It is important to note that there is no concern for the savings of policyholders associated with Menora Mivtachim.