The chairman of Israel’s largest labor federation, Arnon Bar-David, was arrested overnight Sunday along with his wife and several senior officials as part of a major corruption investigation that police say has exposed one of the most serious scandals in recent years.
The sweeping probe, dubbed “Hand in Hand,” involves roughly 350 people connected to labor committees and public-sector unions. Eight suspects have been arrested and 27 others detained for questioning. Among those in custody are two city mayors from northern and southern Israel.
According to police suspicions, a prominent businessman in the insurance sector, described as a close associate of Bar-David, used his ties within the Histadrut — Israel’s largest labor federation — to distribute lucrative jobs and appoint allies to key union and board positions across local authorities, government-owned corporations, and major companies.
Police allege the businessman leveraged his connections to secure insurance contracts with labor unions and municipalities, while offering senior roles in return — including positions at Keren Kayemeth LeIsrael (KKL) and Israel Railways. Investigators say he also spent illicit funds on luxury restaurants, travel, and personal expenses. The businessman and his son are among those detained.
The case follows a two-year undercover investigation led by the Israel Police’s Lahav 433 anti-corruption unit, which became public Monday with a wave of coordinated raids at 55 homes and municipal offices across six local authorities. Police are seeking to recruit a state witness among the suspects.
Authorities say the suspects are under investigation for bribery, fraud, breach of trust, money laundering, and tax offenses.
Police Commissioner Daniel Levi and Lahav 433 Commander Meni Benjamin held a situational assessment following the arrests. “This is one of the most severe cases of corruption we’ve encountered — a network connecting business figures, union leaders, and elected officials,” Shabtai said. “We will investigate fearlessly to uncover the full truth.”
Benjamin added that the probe reveals “a pattern of quid pro quo relationships between businesspeople and public-sector officials,” emphasizing that Lahav 433 “will continue its uncompromising fight against public corruption with professionalism and integrity.”
The investigation is being conducted under the supervision of the State Attorney’s Office’s Economic Department, which is expected to file additional indictments in the coming days.
In a statement, the Histadrut said it is cooperating fully with authorities: “The Histadrut, its traditions, and its people are committed to transparency and law enforcement. We are confident the investigation will prove that no wrongdoing was committed.”
A senior federation source expressed support for Bar-David and his wife, saying: “We are sure that once the storm of these arrests subsides, all allegations against them and others will be proven baseless.”