Histadrut Funds Flowed to Shas Party's Newspaper
Translated & summarized from Calcalist by baba
Millions of shekels from the Histadrut labor federation were channeled to "HaDerech," the Shas party's newspaper, over four years, totaling over 3 million shekels. The payments were designated for promoting the faction's goals and informing workers of their rights. In 2023, advertising expenses for the newspaper constituted 87% of the Shas faction's total expenditures. The Histadrut and the Shas party have issued statements defending the arrangement as legitimate use of reserves and for public information, while Chaim Biton, a former signatory, stated the decision was made by the faction's chairman.
The story in 6 lines · by baba
- Histadrut transferred over 3 million shekels to Shas party's newspaper "HaDerech" over four years.
- In 2023, Shas faction spent 556,000 shekels on "HaDerech," 87% of its total expenditures.
- The payments were officially for promoting the faction and informing workers of their rights.
- A separate investigation involves Chaim Biton and alleged misuse of education funds for "HaDerech."
- Shas party claims its Histadrut faction is a separate entity, not managed by the party.
- Histadrut states funds used were from prior years' reserves, not for political motives.
For over four years, the Histadrut labor federation served as a consistent source of income for "HaDerech," the official newspaper of the Shas party. The labor organization transferred funds to the Shas faction within its institutions, which then paid the company publishing the newspaper. The total value of this arrangement is estimated at over 3 million shekels. These payments were officially categorized as expenses for promoting the faction's objectives and disseminating information about workers' rights.
In 2023 alone, the Shas faction allocated approximately 556,000 shekels for this purpose, representing about 87% of its total expenditures. According to the Histadrut's comptroller report, the faction held no conferences in 2022-2023 and employed no staff from January 2023 onwards. This spending pattern is unusual compared to other factions within the Histadrut, whose post-election budgets typically focused on field activities, conferences, staff, or supporting charities. While other factions like Labor and "Sela" also spent on advertising in 2023, their expenditures were significantly lower.
Chaim Biton, identified in the report as a former signatory for the Shas faction in the Histadrut, is also mentioned in a separate investigation concerning the funding of "HaDerech." This separate inquiry involves suspicions that funds from the Ministry of Education were improperly used to finance a children's institution. The police concluded this investigation in August 2026 and forwarded the case to the tax and economic prosecution.
The connection between the Shas faction and party media predates this arrangement. Previously, the faction held shares in companies associated with "Yom L'Yom," the predecessor to "HaDerech." After that investment was written off due to liquidation proceedings, a new arrangement began in March 2020 with "HaDerech Publishing Ltd." Instead of an investment, the faction began recording advertising expenses in the new newspaper, totaling around 468,000 shekels in the first ten months and reaching approximately 2.2 million shekels over the first four years.
The newspaper's content included a news section highlighting Histadrut agreements, union activities, and workers' rights, often featuring the Shas faction's emblem and slogan. Additionally, a two-page section in a mothers' supplement provided professional advice on topics like retirement age and holiday rights. In 2023, the faction's advertising expenses of 556,000 shekels exceeded its total allocation of 349,000 shekels from the Histadrut. The faction stated that the advertising was funded by previous years' reserves, as the current allocation was insufficient.
The Shas party stated that its faction in the Histadrut is a separate entity and that the party is not involved in its daily management. The Histadrut maintained that the comptroller's report does not suggest political motives or personal connections in the fund transfers, and that the spending utilized reserves from prior years. The Shas faction reiterated that the advertising aimed to inform the Haredi public about workers' rights and complied with approved budgets. Chaim Biton clarified that he was never the faction's CEO but a signatory for the "Shas Association in the Histadrut," and that the decision to engage with the newspaper was made by the faction's chairman and approved by the association's management after legal review.