Israeli Trading Company Faces 5 Million Shekel Bad Debt from Gaza Food Supplies Amid Internal Dispute
Shintraco, an Israeli international trading company that supplied 7,000 tons of flour to aid organizations in Gaza during the recent conflict, is struggling to recover 5 million shekels in unpaid debts related to food deliveries to the Gaza Strip. This information emerged from documents submitted on Thursday to the economic division of the Tel Aviv District Court as part of a legal dispute between the company’s controlling shareholder, Swiss businessman Rigas Fradikis (51%), and the CEO and minority shareholder, Shalom Hatuka (49%).
Following the ceasefire in Gaza, Israeli food and retail companies have seen growth opportunities by increasing sales to the region, with commitments to transfer 600 food trucks daily. Victory supermarket chain, for example, sold 100 million shekels worth of goods to Gaza in one month during the first quarter. However, unlike luxury and branded products sold by other companies, Shintraco focuses on basic consumer goods such as various grains, vegetable oils, sugar, and spices. The dispute reveals that Hatuka and his deputy Asaf Sahak claimed losses of 85 million shekels, including the 5 million shekel debt from Gaza, which they say prevent dividend payouts despite reported profits of 137 million shekels.
Fradikis alleges that Hatuka has withheld information and obstructed access to documents needed to verify these claims, accusing him of using his effective control of the company to block dividend distributions. The lawsuit demands an immediate payment of one million euros to each shareholder and includes requests for detailed documentation on the bad debts in Gaza.
This is not the first time Shintraco and Hatuka have faced legal issues related to business dealings with entities connected to the Palestinian Authority. In a 2009 plea deal, they were convicted of importing and transferring food products to Gaza through a company linked to terrorist organizations, which was declared an illegal association by the Israeli Defense Minister. Hatuka received a suspended sentence and a fine, and the company was also fined. No response has yet been received from Shalom Hatuka regarding the current dispute.
