15 Ashdod seaport workers arrested
Together with a senior figure in the Israeli sport world, seaport workers and union officials were taken in for questioning on suspicion of conflict of interest, fraud, extortion, breach of trust and corruption.
Some 15 workers in the Ashdod seaport and senior officials in port's workers' union were arrested Tuesday morning on suspicion of offense ranging from extortion, to fraud, corruption, breach of trust and money laundering.
A police investigation revealed that dock workers created a system to promote the goods and interests of certain privately owned companies through and in the docks in return for large sums of money and benefits.
Among the group was a senior figure in the Israeli world of sport and a senior figure in the seaport's union; the names of those arrested is currently under gag order.
The group is suspected of pressuring companies interested in working with or through the port to procure the services of the private companies paying them off as an informal condition for doing business with Israel's largest and most active seaport.
According to the police, not only was the decision to work with certain companies illegal in terms of conflict of interests, at times it also posed a direct financial threat to the dock's revenue, and thus harmed the public's interest. The dock is owned by the State.
The Ashdod port is home to what is arguably one of Israel's strongest labor unions. As it one of Israel's only two deepwater seaports, it is vital for Israel's economic activities, and the union has in the past been accused of using its pivotal role to secure high-pay and unprecedented working conditions for dock workers.
Strikes and labor disputes are common on the docks, and both Finance Minister Yair Lapid and Economy Minister Naftali Bennett have vowed to reform the docks.
Lawyer Benny Katz, who represents one of the port workers arrested, said the wave of arrests "caught my client completely off guard, he was the first to inform the police about the infiltration of foreign financial interest into the seaport, namely through rampant privatization and political appointments, to name a few. The police have for evidence information my client passed them a year ago."
Gateway to corruption
A year ago, police revised information regarding irregularities regarding contracts between the port and companies providing it with services, which involved kickbacks – either direct or indirect – to senior officials at the seaport.
Investigators conducted an undercover investigation and, according to the police, managed to document alleged illicit activity.
In addition, tax authorities cooperated with the police's economic fraud division, and presented them tax filings by the private companies, thus allowing the police to calculate the value of the alleged illegal activities.
Moreover, the investigation revealed that the corrupt culture prevalent at the port reached a point where senior officials at the port were competing against one another to promote different companies, respectively, in their bid to provide services to the port and its clients.
They will be brought before a Petah Tivkva Magistrate Court later Tuesday for extension of their remand. They face a string of charges: Corruption, fraud, breach of trust, abuse of official power, blackmail, extortion, conflict of interest and money laundering.
Matan Tzuri contributed to this report
