Histadrut Chairman Bar-David and Senior Officials’ Detention Extended in Expanding Corruption Probe

The Rishon Lezion Magistrate’s Court on Monday night extended the detention of Histadrut Chairman Arnon Bar-David, his wife Hila Canister Bar-David, deputy chairman Roy Yaakov, another senior official, the chairman of the workers’ committee, and three additional suspects in what police are describing as “the largest case ever investigated” by the National Fraud Investigation Unit (YAH) of Lahav 433.

According to law enforcement officials, this is only the first wave of arrests in the sprawling “Yad Luchat Yad” corruption affair, which has already drawn in senior figures from the Histadrut, government companies, and local authorities.

Dozens questioned, raids nationwide

During the day, police detained 27 additional suspects for questioning and conducted 55 simultaneous raids across the country. Dozens more individuals — including senior officials from Histadrut subsidiaries and public-sector entities — were questioned.

Among those interrogated was Kiryat Gat Mayor Kfir Suisa, who confirmed that he was not arrested and denied any wrongdoing.

Sources familiar with the investigation said a “parade of suspects and witnesses” is expected to continue today at Lahav 433 headquarters in Lod, where even Likud ministers may be summoned to testify.

During court proceedings, one attorney mentioned the name of Minister Miki Zohar, noting that his former director-general at the Ministry of Culture and Sports had been referenced in documents — and questioned why he had not yet been investigated.

Police: ‘Unprecedented abuse of power’

“This is one of the largest public corruption cases investigated in Israel,” said Superintendent Ronen Gilgold during the hearings.

“The affair includes 13 sub-cases, each standing on its own, with unusual financial scope and the systematic exploitation of public trust for monetary gain.”

The investigation centers on Ezra Gabbay, a Likud activist and businessman in the insurance sector, described by police as a close associate of Bar-David. Gabbay allegedly orchestrated a network of favor exchanges, bribes, and appointments worth millions of shekels — leveraging his proximity to the Histadrut leadership to secure senior positions and contracts.

Police described the case as nationwide in scale, with funds allegedly “stolen by exploiting official positions.”

In court, Gabbay claimed investigators pressured him to implicate Bar-David, telling the judges:

“They told me during the investigation — ‘bring evidence about Bar-David and go home.’”

His detention, and that of his son Assaf Gabbay, a senior figure at the Gabbay Insurance Agency, were both extended. Police say the younger Gabbay is “involved in all 13 sub-cases.”

Bar-David: ‘Nothing to hide’

Histadrut Chairman Arnon Bar-David was the first suspect whose detention was extended. His attorney, Micha Patman, told the court:

“He has been a close friend of the insurance agent for 30 years. He is fully cooperating with the investigation. His two mobile phones are already with police, and he has provided all access codes. He has nothing to hide.”

Patman added:

“The agent is a storyteller with a big mouth. The police commissioner and senior officers are also his clients. If Bar-David is sitting here because of his companies, then the commissioner should be sitting next to him.”

Additional detainees include senior Histadrut figures

Also among those whose detention was extended:

• Hila Canister Bar-David, the chairman’s wife and longtime CEO of the “Shahar On” association, suspected of bribery, fraud, breach of trust, and brokering a bribe. Her lawyer argued she was being “detained to pressure her husband” and said “she has nothing to do with the insurance agent — he even detests her.”

• Shavi Michaeli, chairman of Histadrut Mishan, an assisted-living network, and since mid-2022, head of the Corporations Authority, established at Bar-David’s initiative.

• Roy Yaakov, acting chairman of the Histadrut, previously head of the Oz faction within the organization, founded by Minister Haim Katz. Police said Yaakov “promoted insurance deals with Ezra Gabbay and brought him clients in exchange for benefits.”

• Daniel Ziegraich, a businessman and owner of Millennium Marketing, the importer of Arcosteel.

• Liav Eliyahu, chairman of the Israel Railways workers’ committee, who reportedly held discussions with investigators during the hearing in an attempt to negotiate the terms of his detention.

Next steps: more arrests expected

Police sources confirmed that additional arrests are anticipated in the coming days as investigators delve into the financial and political networks linked to the Histadrut leadership.

Officials at Lahav 433 described the affair as a “complex, multi-layered corruption network” involving bribery, money laundering, and abuse of public trust — potentially spanning several government and corporate sectors.

The case is expected to remain under partial gag order as the investigation unfolds.