Israeli Police Freeze Tens of Millions in Menora Mivtachim Accounts in Labor Union Corruption Probe

Israeli police froze tens of millions of shekels this morning in the bank accounts of insurance company Menora Mivtachim and several of its senior executives as part of an ongoing corruption investigation involving the Histadrut labor federation, known as the "Hand Shaking" affair. The police statement revealed that further interrogations of the executives will take place this week at the National Fraud Unit.

Among those questioned so far are Ari Kalman, CEO and shareholder of Menora Mivtachim Holdings; Yehuda Ben Assayag, chairman of Menora Mivtachim and former CEO; Orit Kramer, deputy CEO and head of the health division; Eran Grifel, chairman of Menora Mivtachim Holdings; and Michael Kalman, CEO of Menora Mivtachim. The investigation centers on suspicions that Menora Mivtachim promoted the signing and renewal of a pharmaceutical insurance policy with the Histadrut by providing benefits and payments to insurance agent Ezra Gabai.

Gabai allegedly used his influence over Arnon Bar-David, chairman of the Histadrut, to advance and renew the policy repeatedly, thereby increasing the company's profits. The police continue to probe these allegations as part of a broader corruption case within the labor federation.