Shas MK Chaim Biton Investigated Over Alleged Misuse of Education Funds for Party Newspaper

On August 20, 2024, Israeli police unit Lahav 433 arrested a suspect involved in defrauding evacuated families and state authorities of millions of shekels. In a related development, Shas party MK Chaim Biton was questioned again by Lahav 433 as part of an ongoing investigation into alleged misuse of public funds. Biton is suspected of diverting money from the Maayan Hachinuch Hatorani education network, where he served as CEO about seven years ago, to finance a private Shas party newspaper.

The case has been under investigation for the past year by Lahav 433’s National Fraud Investigations Unit (Yaha) and is expected to soon be transferred to the State Attorney and Attorney General for a decision on possible indictment. The probe initially proceeded covertly but became public in March 2025, when investigators questioned four suspects, including Biton, and conducted searches to seize relevant documents.

Suspected offenses include fraud, breach of trust, false corporate records, and money laundering. Funds originally allocated for educational purposes were allegedly used unlawfully to publish and distribute a children’s supplement in a privately owned newspaper linked to Shas. The financing reportedly involved multiple methods, such as paying a network employee’s salary for editing the party newspaper and a circular transaction through a printing house servicing the education network.

Previously, "Kan News" revealed that the education network attempted to pay hundreds of thousands of shekels to prevent exposure of documents connecting it to the newspaper’s funding. The investigation continues as authorities prepare to decide on formal charges.