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

Israeli police have frozen tens of millions of shekels in the bank accounts of a public company and several of its senior executives as part of an ongoing corruption investigation centered on the Histadrut labor union. The probe, conducted by the National Fraud Investigations Unit (Yahch"a) within Lahav 433, focuses on a scheme known as "Yad Lochatzet Yad" involving bribery and illicit benefits to promote insurance policies.

One key sub-investigation targets Menora Insurance Company, which allegedly advanced the signing and renewal of a pharmaceutical insurance policy within the Histadrut by providing benefits and payments to insurance agent Ezra Gabai. Gabai is suspected of using his influence over Arnon Bar-David, the Histadrut chairman, to secure the policy’s renewal repeatedly, thereby increasing company profits.

In November 2023, police arrested Bar-David, Gabai, Gabai’s wife, Hila Kanister Bar-David (wife of the Histadrut chairman), and other senior union officials. The investigation has gathered hundreds of testimonies and centers on allegations that senior Histadrut officials facilitated the transfer of workers to Gabai’s insurance agency in exchange for favors and Gabai’s influence over worker committee director appointments.

Bar-David returned to his position at the Histadrut building in March 2024 but faces several restrictions, including a ban on contact with other suspects and involvement in insurance-related matters. In April 2024, Culture and Sports Minister Miki Zohar was questioned for a second time by Lahav 433 regarding possible involvement in the case.

All suspects, including Bar-David, Hila Kanister Bar-David, Ezra Gabai, and Asaf Gabai, remain under investigation and have not been charged or convicted, preserving their presumption of innocence.