Israeli Police Seize Tens of Millions in Labor Union Corruption Probe Involving Menora Insurance

Israeli police announced on Monday that they have seized tens of millions of shekels from the accounts of Menora Insurance and several of its senior executives as part of an ongoing corruption investigation involving the Histadrut labor union. The investigation has strengthened suspicions against those involved, with key figures expected to be summoned for further questioning this week by the National Fraud Investigations Unit (YAHa) at Lahav 433.

One of the sub-cases under scrutiny concerns a public company suspected of facilitating the signing and renewal of a pharmaceutical insurance policy within the Histadrut. The policy’s renewal allegedly involved bribes and payments to Ezra Gabay, an insurance agent central to the case, who reportedly influenced Histadrut Chairman Arnon Bar-David to promote and renew the policy repeatedly to increase company profits.

Following a police raid on Menora Insurance offices in December, two additional senior executives were summoned for interrogation. Recent reports indicate that the evidence against the suspects has significantly increased, including visual proof of alleged bribery transactions.

About six weeks ago, Culture and Sports Minister Miki Zohar was questioned for the third time at Lahav 433 headquarters amid testimonies linking him to Ezra Gabay. Zohar faces charges of bribery, fraud, and breach of trust. During questioning, investigators played recordings in which Gabay claimed to "control" Zohar and arrange meetings and appointments. Zohar denied knowledge of some statements but acknowledged that some meetings took place as part of political networking.

The "Yad Lochachat Yad" (Hand Shakes Hand) affair surfaced in early November when police raided Histadrut buildings and arrested senior officials, including the chairman and his wife, on suspicions of bribery, fraud, breach of trust, money laundering, and tax offenses. Several labor union leaders across Israel were also detained, including the chairman of the Israel Railways union and the acting Histadrut chairman. The chairman of El Al’s workers’ committee was interrogated, and police confiscated his computer and other materials. Additionally, the mayors of Harish and Kiryat Gat were questioned in connection with the investigation.