Minister Haim Katz faces hearing before indictment
Attorney General Mandelblit will hold a hearing Sunday regarding Welfare Minister Haim Katz before filing an indictment against him for bribery, fraudulently obtaining benefits, cheating and breach of trust.
Attorney General Avichai Mandelblit will hold a hearing for Welfare Minister Haim Katz on Sunday following which he will decide whether to file an indictment against Katz for bribery, fraudulently obtaining benefits under aggravated circumstances, fraud and breach of trust. Katz said Thursday that he is "certain that after the hearing, this bizarre case will be shelved because there is nothing factual or legal about it."
In May, the Tel Aviv District Attorney's Office (for Taxation and Economics) notified Minister Katz of the expected step. The decision was made on the basis of the recommendations of State Attorney Shai Nitzan and District Attorney Liat Ben Ari Schweki.
Katz has served in the Knesset for the past 19 years, except for a short break, and was appointed minister in May 2015. Between 2005-2006 and 2009-2013, Katz served as Chairman of the Knesset's Labor and Social Affairs Committee, where he wielded considerable influence over advancing legislative processes as well as various matters relating to the public.
The police suspect that Katz acted to appoint a chairman of the Israel Aerospace Industries board of directors and intervened in internal matters related to the organization of employees at the company.
Another case concerns Katz's ties to investor Mordechai Ben Ari, who is considered an expert on investment portfolio management.
According to the State Attorney's Office, Ben-Ari is suspected of instructing Katz on how to manage his investment portfolio so frequently that the portfolio was actually managed by him. This was allegedly done without any financial compensation from the minister, contrary to accepted practice, and without a formal arrangement of their relations as mandated by law.
As part of the relationship between the two, Ben-Ari advised Katz on one occasion to purchase securities in subsidiaries of Aquitel, a dominant public holding company, while exploiting insider information about future developments he learned of as part of his position in the company.
The State Attorney's Office noted that Minister Katz and Ben-Ari had carried out large-scale coordinated transactions in the framework of trading on the stock exchange, in a manner that would have yielded a great deal of economic benefit to Katz.
"Ben-Ari's expertise and his great involvement in managing Katz's portfolio yielded millions of shekels in profits," the State Attorney's Office wrote.
In addition, Katz opened a trust account under the management of Ben Ari when he was appointed welfare minister, but hid his identity in contravention with the rules.
"The economic relationship between the two included the expectation and mutual understanding that Ben-Ari could use the public role of Minister Katz, with the powers vested in him and with the accessibility that the job provides for the benefit of himself or the Aquitel Group."
Investigators of the Department of Intelligence and Trade Control at the Israel Securities Authority claimed that in exchange for the benefits, Katz exercised his power and authority as a public figure to help advance Ben-Ari's affairs. Among other things, the minister acted to pass a bill that embodied a very high potential economic value for Ben-Ari and Aquitel.
"Minister Katz conducted discussions on the bill, initiated and drafted by Ben Ari himself, at the Labor and Welfare Committee he heads, and invited him to the committee as the only expert on the subject," the State Attorney's Office said.
"This was done while concealing the personal and business relationship with Ben Ari and presenting him as an expert without any vested interest, despite the considerable business interests inherent in advancing the proposal."
