Israel Police announced Monday morning that the National Fraud Investigation Unit, part of Lahav 433 (the police anti-corruption unit), had arrested 17 suspects and detained seven others for questioning in a public corruption case. Those held include the mayor of a large city in central Israel, his wife, the CEO of the municipal economic development company and several businesspeople. Police suspect them of bribery, fraud and breach of trust, money laundering and tax offenses.
i24NEWS reported that the mayor is from the Sharon area, while Amit Segal identified him as the mayor of Kfar Saba. Official statements did not initially name the city.
The unit investigated the case covertly for more than a year before Monday's arrests. Police used surveillance and wiretaps during that period and documented cash bribe payments. If charges are filed, the case could affect municipal governance and ongoing city contracts.
Police investigators said they suspect the mayor and the economic development company's CEO worked on behalf of those paying the bribes, mostly in cash, and helped them secure lucrative contracts across several areas of municipal activity. In several cases, police allege, the company created obstacles for rival bidders so that the payers would win. Police said the mayor was personally involved in the scheme.
By police estimates, hundreds of thousands of shekels in bribes reached the mayor and his wife. The couple paid for what police described as an expensive lifestyle with the money, including shopping for clothing and other valuables and trips abroad paid in cash. The wife is suspected of maintaining contact with criminal figures and receiving large sums in cash herself. Ynet reported that, according to police, she held no official position but allegedly accepted cash to push tenders through the municipal company.
Police also said that well-known criminal figures from central Israel were involved in the scheme over time, directly or indirectly, in exchange for winning tenders and in connection with violent offenses. Criminal figures are also suspected of pressuring election rivals, with detectives raiding 30 locations.
During Monday's operation, officers searched offices and businesses and seized money and property. The Economic Department of the State Attorney's Office is accompanying the investigation. After initial questioning, the unit intends to ask the Rishon LeZion Magistrate's Court to extend the detention of those arrested.
