Unbelievable
Largest Corruption Scandal in Israel’s History: Histadrut Chief Arrested in Explosive Nationwide Sweep
Authorities Launch “Handshake Affair,” Detain Dozens Including High-Profile Officials and Business Leaders
In a dramatic escalation of a two-year covert investigation, Israel’s Lahav 433 anti-corruption unit arrested dozens of senior officials early Monday, including Arnon Bar-David, the powerful chairman of the Histadrut, Israel’s largest labor federation.
Bar-David’s wife was also detained. The sweeping probe, dubbed the “Handshake Affair”, alleges bribery, fraud, and large-scale abuse of public trust.
Police forces raided the Histadrut headquarters in Tel Aviv, multiple local municipalities, and government-affiliated corporations in coordinated pre-dawn operations. Eight suspects, including Bar-David and other top Histadrut executives, are expected to appear today at the Rishon LeZion Magistrate’s Court for a remand hearing.
Allegations: Bribery, Cronyism, and Rigged Appointments
According to investigators, Bar-David used his control over a major insurance company to secure seats on corporate boards for associates in exchange for lucrative client referrals from public institutions, including municipalities, state-owned companies, and major unions. Authorities say the web of corruption extended into municipal elections and possibly national political processes.
Charges under investigation include bribery, breach of trust, money laundering, and the suspected funneling of political favors in exchange for financial gain.
Two city mayors were also detained, one from northern Israel, along with senior officials from agencies such as Israel Railways, El Al Airlines, the KKL-JNF forestry authority, and the Wingate Institute.
So far, police report eight arrests and 27 detentions, with more than 350 individuals expected to be questioned in connection with the widening probe.
Widespread Raids and Seizures
Law enforcement carried out searches at:
Several prominent labor leaders were also brought in for questioning, including the chairperson of a major government workers' union in northern Israel.
Legal Defense Pushes Back
Attorneys representing one of the senior suspects denied all allegations.
“This came down like a bolt from the blue,” said lawyers Ziv Gilad and Rinat Gilad Perl, who represent a senior Histadrut official.
“Our client has no connection whatsoever to these baseless claims. We believe this will all turn out to be an overblown case.”
Police: “A System of Give and Take”
Lahav 433 Commander, Deputy Commissioner Meni Benjamin, stated:
“This morning, after two years of undercover investigation, the operation has gone public. The evidence so far paints a troubling picture of systemic corruption in which business figures and public officials engaged in reciprocal bribery schemes.”
He vowed the investigation would continue “without compromise.”
The probe is being overseen by the Economic Crimes Unit of the State Attorney’s Office.
Official Response
The municipality of Rosh HaAyin confirmed a police presence at its offices but emphasized it was fully cooperating:
“The city operates transparently and in accordance with public standards. We were assured by investigators that the city itself is not a suspect.”
Municipal services across affected cities are reported to be functioning normally.
Around 13% of the Israeli labor force are members of the Histadrut.