Histadrut Corruption Probe Expands to Ness Ziona Municipality Official

An additional development has emerged in the ongoing "Handshake" corruption investigation, which targets the Histadrut labor federation, workers' committees, and local authorities. The investigation has now expanded to include the Ness Ziona Municipality, police announced Tuesday morning. This new sub-affair involves a senior official at the municipality who is being investigated by the Lahav 433 fraud investigation unit for suspected "corrupt relations" with insurance agent Ezra Gabay. Gabay, considered a central suspect in the broader corruption case alongside Histadrut Chairman Arnon Bar-David, was previously investigated.

Police stated that officers detained the senior official on Tuesday, searched his home and municipal office, and seized documents and digital media. Other individuals involved have also been summoned for questioning. In response to the police activity at the municipality, Mayor Shmuel Boxar and Director General Gil Mamon released a video statement. They explained that several months prior, they identified "improper conduct regarding insurance" by the official and subsequently filed a complaint with Lahav 433. They affirmed their full cooperation with the police.

The Ness Ziona Municipality issued a statement emphasizing its commitment to integrity, professionalism, and transparency, and its dedication to safeguarding public funds and trust. The municipality, in coordination with the Ministry of Interior, acted lawfully to expedite the senior official's removal from his position. The "Handshake" case, which became public in November 2025 after over two years of covert investigation, has since branched into numerous sub-affairs, all linked to insurance matters and Ezra Gabay's insurance agency.

To date, over 300 individuals have been investigated or provided testimony in the sprawling case, which remains active. Suspicions include bribery, fraud, breach of trust, conspiracy, money laundering, and tax offenses. The investigation alleges that Bar-David and other Histadrut officials promoted Gabay's insurance agency's financial interests by arranging for it to become the insurance agent for various Histadrut-affiliated workers' committees in companies and local authorities without competitive tenders. In return, Bar-David and others allegedly received various benefits from Gabay. The investigation is examining suspicions against senior officials in major municipalities, Histadrut and government bodies, and the Menora insurance company across approximately 20 sub-affairs. Bar-David and Gabay have previously denied the allegations.