The investigation, which was covert prior to the arrests, is headed by the police Financial Fraud Unit Commander Maj.-Gen. Alon Grossman.
The investigation began after the police were tipped off regarding financial improprieties and sexual harassment in city hall.
The suspects were linked to a series of grave sexual offenses committed against a female City employee.
The investigation also revealed that they were embroiled in a bribery scheme involving fixed municipal bids.
Police Investigations and Intelligence Division Chief Maj.-Gen.Yoav Segalovich was briefed on the case and sanctioned the arrests.
'Scandal shockingly extensive'
According to available details, the suspects subjected the woman to sexual abuse for prolonged period of time.
The police suspect some of the encounters were filmed in order to be used as leverage in future extortion attempts.
"The extent of this case is shocking," a police source said, adding that the deeper the police investigate, "They more it become apparent that many people within city hall knew what was going on."
The police have been able to ascertain that the woman was forced to have sex with her superior in various places in city hall, as well as in several other places.
She was also subjected to sexual abuse by a second City official, who also served as her superior.
The suspects will be arraigned on Wednesday afternoon at the Rishon Lezion Magistrate's Court.
The woman refused to file a police complaint at first, fearing she would be subjected to even more abuse.
Ynet learned that the police are now trying to turn a senior city official, who is a close associate of the suspects, into a witness for the prosecution.
"I don't know what's worse – the fact that this poor women was taken advantage of so brutally, or that fact the so many people knew what was going on and did nothing to stop it," a police source said.
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