It is suspected that for a long time, the senior official, who had a decisive influence in the sphere of public transport, favored the company in question over the rest.
Two additional suspects were taken for questioning. During the arrest, the suspects’ homes and offices had been searched by the police.
The police said the case was uncovered following an undercover investigation conducted by the Lahav 433 economic crimes unit.
The undercover investigation raised the suspicion that the company negotiated a concession agreement with the Ministry of Transportation to operate bus lines that were deemed "more profitable,” in return for various benefits of bribery, which did not include money, that the official received from the company’s owners with whom he had a personal relationship.
The suspects are being investigated on suspicion of bribery, fraud and breach of trust, as well as other corruption offenses.
The Jerusalem District Attorney's Office accompanies the case, which will be brought before the court in Rishon Lezion on Wednesday afternoon.
"As part of the Israel Police fight to combat corruption, which affects everyday life of ordinary citizens, and promote integrity in public sector, we will continue to investigate and expose improper procedures,” said the official statement.
“In light of evidence that points to additional offenses that might have been committed, the National Unit for Combating Economic Crime in Lahav 433 opened an investigation following a period during which covert activity took place," it concluded.