Arnon Bar-David, who heads the Histadrut, Israel’s most powerful trade union, was detained for questioning by police alongside his wife on Monday morning as part of a major probe into bribery and fraud.
According to Israel’s Channel 12 News, over 350 people were questioned Monday, including several mayors and “very senior” players in the Israeli economy, following a raid on the Histadrut’s Tel Aviv offices.
The affair, dubbed “Hand Shaking Hand” by police, is “one of the most serious cases we have encountered,” Israel Police Commissioner Danny Levi said in remarks to fellow officers cited by the channel.
“There is a link between businesspeople and senior figures in the economy, including labor union officials, involving the creation of electoral and promotional connections in parallel,” Levi stated.
“We will act with determination and without fear of investigating senior officials in order to uncover the truth,” he vowed.
A prominent businessperson from Israel’s insurance sector, described as a close associate of Bar-David, allegedly leveraged his Histadrut ties to secure lucrative jobs and install allies in key union and board positions with local authorities, state-owned enterprises and major companies.
Police allege the businessman used his connections to obtain insurance contracts with labor unions and municipalities, offering senior roles in return, including positions at Keren Kayemeth LeIsrael-Jewish National Fund (KKL-JNF) and Israel Railways. Police also allege that the suspect spent illicit funds on luxury dining, travel and personal expenses.
The arrests followed a two-year undercover probe led by the police’s Lahav 433 anti-corruption unit, which led to the wave of coordinated raids at 50-plus homes and municipal offices of six local authorities.
Authorities said that the arrested suspects are under investigation for bribery, fraud, breach of trust, money laundering and tax offenses.
Lahav 433 head Meni Binyamin said the probe revealed “a pattern of quid-pro-quo relationships between businesspeople and public-sector officials,” emphasizing that the unit “will continue its uncompromising fight against public corruption with professionalism and integrity.”
The investigation is being conducted under the supervision of the Economic Department in the Office of the State Attorney, which is reportedly preparing indictments against key suspects in the case.
In a statement cited by Ynet, the Histadrut said it would fully cooperate with the investigation: “The Histadrut, its traditions, and its people are committed to transparency and law enforcement.” It added, “We are confident the probe will prove that no wrongdoing was committed.”
In September 2024, an Israeli labor court cut short a strike called by the Histadrut in protest against Prime Minister Benjamin Netanyahu’s government’s failure to secure a truce deal with Hamas terrorists.
It came after the military announced that the bodies of six hostages had been found in a tunnel in southern Gaza, sparking anti-government protests and calls by left-wing political leaders for a general strike.
Judge Hadas Yahlom, president of the Labor Court in Bat Yam, just south of Tel Aviv, said in her decision that “the strike is political; there is no connection between the killing of the hostages and the economy.”
