Construction Firm Best Owners Return 1.1 Million Shekels Amid Financial Irregularities Probe
Translated & summarized from Calcalist by baba
Best construction company’s controlling shareholders returned 1.1 million shekels after tax authorities raised concerns over financial irregularities involving a subcontractor. An independent investigation into payments and fund transfers within a subsidiary is underway, revealing potential procedural violations. The probe follows events from when Best was private, before its June stock market debut.
The story in 6 lines · by baba
- Best’s controlling shareholders returned 1.1 million shekels amid financial irregularity concerns.
- Tax authorities questioned Best about a subcontractor linked to fund withdrawals from a subsidiary.
- Withdrawals of 700,000 to 1 million shekels occurred between October 2024 and June 2026.
- Internal auditor Shlomi Drori was appointed as independent investigator with legal support.
- Suspicion arose over unauthorized 2.2 million shekel transfers from a subsidiary project.
- Best was private during the events and lacks external directors or an audit committee.
The controlling shareholders of Israeli construction company Best have returned 1.1 million shekels to the company following suspicions of financial irregularities, the company reported on Thursday. On August 19, tax authorities contacted Best regarding a subcontractor involved in an ongoing investigation. It emerged that between October 2024 and June 2026, the controlling shareholders, through this subcontractor, withdrew between 700,000 and 1 million shekels from the subsidiary’s funds. The shareholders claimed the withdrawals were accidental and promptly returned the full amount with interest, totaling 1.1 million shekels.
These events occurred while Best was still a private company, prior to its stock market listing in June. To date, Best has not appointed external directors or established an audit committee composed of independent directors. In response, the company’s chairman appointed internal auditor Shlomi Drori, who served in this role during the private period, as an independent investigator of the case. Drori will be assisted by lawyers Zvi Agmon and Yehuda Gindi to examine the subcontractor agreements, payments, and the nature and scope of the irregularities within the subsidiary. The company stated that the investigative team has all necessary resources to conduct the review.
Additionally, suspicions arose regarding 2.2 million shekels transferred from a "non-material" project of the subsidiary through the subcontractor, despite the amount not being budgeted for that project. Best said these funds were paid to third parties unconnected to the controlling shareholders but linked to company operations, in violation of procedures. The company did not disclose which subsidiary was involved or explain why it appointed an internal auditor as the independent investigator. The investigation is ongoing, with preliminary findings already casting doubt on the company’s management practices. Best is owned by the Tanus family, with Phoenix holding about 18% of shares through provident and mutual funds.
