Head of large beverage firm suspected of recycling fraud worth hundreds of millions
After months-long undercover probe, authorities announce arrest of businessperson, allegedly linked to northern crime mob, who lied about recycling that never took place
Sue Surkes is The Times of Israel's environment reporter
The owner of a major beverage importer was arrested on Tuesday on suspicion of scamming the state out of hundreds of millions of shekels by claiming bottle recycling that never took place, the Environmental Protection Ministry announced.
The man, who was detained alongside the owners of other firms, is also allegedly linked to a crime network in northern Israel.
Authorities announced the arrest of the high-ranking businessman on suspicion of submitting false reports to the Environmental Protection Ministry regarding the number of beverage containers collected and sent for recycling.
It underpinned the reports with forged invoices totaling hundreds of millions of shekels to supposedly prove that the bottles had been collected and recycled when they had not.
The ministry said it was “determined to work to promote recycling in Israel and will work within its powers together with the Israel Police to prevent the involvement of criminal elements in the industry and to ensure that the recycling reported by the companies is carried out in practice and honestly.”
The Deposit Law on Beverage Containers imposes a deposit on all cans of beverages and glass and plastic bottles containing 100 milliliters (3.4 fluid ounces) to 5 liters (5.3 quarts). The deposit is refunded when the customer returns the container, and the aim is to encourage recycling.
Under the law, it is the importers and manufacturers of beverage containers who are responsible for financing their collection and recycling.
The Environmental Protection Ministry sets collection and recycling targets. The companies must report on meeting those targets. If they fail, the ministry can fine them.
In this case, according to the ministry, suspicions about how some of the biggest companies in the market were reporting prompted the opening of an undercover probe several months ago by the Israel Police investigations unit, Lahav 433, the Accountant General’s office, and the tax and customs authority in the northern city of Haifa and elsewhere.
