Police raided the Histadrut headquarters and the homes of senior officials on Monday morning, in what is being described as "an earthquake in the realm of public-sector corruption." Among those arrested were Histadrut Chairman Arnon Bar-David and his wife, the prominent insurance agent at the center of the affair, and some 35 other suspects, including municipal leaders, senior Histadrut figures, and lawyers.
According to the investigation by Police's Lahav 433 anti-fraud unit, which had been conducted covertly for two years, the insurance agent built an extensive network of influence. On one side, he maintained a close personal relationship with Bar-David and other senior Histadrut officials; on the other, he leveraged his connections with local authorities across the country. He allegedly worked to expand his client base by ensuring that his agency would represent committees in numerous municipalities and corporations nationwide.
In return, they benefited from his access and his ability to secure lucrative appointments for them as directors in various organizations, including financial institutions, municipal corporations, and local authorities. Investigators describe a "give-and-take" system in which heads received personal favors, while the agent's companies reaped massive financial gains, tens of millions of shekels annually.
The scope of the investigation
The case is described as vast and complex. Police have carried out searches and interrogations in multiple institutions, including the municipalities of Harish, Rishon Lezion, Kiryat Bialik, Kiryat Gat, Rosh Haayin, and Ashdod; as well as at Israel Railways, El Al Airlines, the Wingate Institute, and Keren Kayemet LeIsrael (Jewish National Fund). In each of these places, officials, primarily labor committee heads, were questioned over their alleged involvement with the insurance agent.
According to the allegations, the mechanism functioned by offering appointments of directors in corporations connected to the Histadrut. In exchange, workers' insurance portfolios were transferred to the agent's company. The agent, reportedly with the backing of Bar-David and other senior Histadrut officials, also arranged paid roles within Histadrut subsidiaries for certain labor leaders.
A senior Histadrut source told Israel Hayom: "We are confident in Chairman Arnon Bar-David's integrity and innocence. We are cooperating with the police but are certain that there was nothing improper in his conduct."
