Histadrut chief reportedly sought to have his wife installed on board of bank

As the far-reaching corruption probe centered on the Histadrut, Israel’s main labor union, continues to unfold, reports emerged Tuesday that union chief Arnon Bar-David allegedly used his position to seek to have his wife installed in a senior position at a bank.

According to the Kan public broadcaster, Moshe Larry, the CEO of Bank Mizrahi Tefahot, was questioned by police on Tuesday in connection with the sprawling case. The report said that Larry was asked about an attempt to have Bar-David’s wife, Hila Kanister Bar-David, appointed to the board of directors of Bank Yahav.

Bank Mizrahi Tefahot holds 50% ownership of Bank Yahav. The other half is controlled by the Israeli government employees’ trade union, which is under the Histadrut umbrella.

However, according to the Calcalist and The Marker business news sites, Larry was called in for questioning about the appointment of Shabi Michaeli, a Histadrut official, to the Bank Yahav board.

Kan reported, however, that Michaeli — who was appointed to the board– was also questioned by police and asserted that he was approved for the position by all the relevant authorities, including the boards of Bank Mizrahi Tefahot, Bank Yahav and the Bank of Israel.

Kanister Bar-David was not ultimately appointed to the Bank Yahav board. Calcalist reported that her nomination was nixed after the relevant supervisory bodies blocked the appointment.

Bar-David and his wife were among the dozens of people arrested and questioned when the major corruption probe burst into the public last week. On Monday, a judge ruled that the couple will both remain in detention until at least Thursday.

At the center of the probe, which police said they have been investigating for the past two years, is Bar-David’s insurance agent, Ezra Gabay, who was also arrested and is suspected of operating a massive bribery network.

According to The Marker, Michaeli was arrested last week as part of the investigation. The news outlet said that police suspect that Gabay was the one who arranged Michaeli’s position on the Bank Yahav board.

Gabay allegedly exploited his close connections to the Histadrut chairman and Likud party officials to fix jobs for his associates. Police suspect that Gabay, through Bar-David, handed out senior positions in government-owned corporations and local authorities in exchange for insurance contracts signed with his agency.

Bar-David has denied the allegations in the case, claiming that his interactions are within the framework of his 30-year friendship with Gabay.

Last week, heads of various workers’ councils affiliated with the Histadrut were arrested alongside Bar-David, including the head of the Israel Railways union. The chairman of El Al’s union was questioned as a suspect after police raided his office. The mayors of Kiryat Gat and Harish were also detained, Channel 13 reported.

Culture and Sports Minister Miki Zohar is also said to be suspected of involvement in the affair, and many of his subordinates in the ministry have already been questioned.

Other names also surfaced — all from Prime Minister Benjamin Netanyahu’s right-wing Likud party — including those of Foreign Minister Gideon Sa’ar, Justice Minister Yariv Levin, Communications Minister Shlomo Karhi, Regional Cooperation Minister David Amsalem and Energy Minister Eli Cohen.

Gabay, who began his political activity at Likud’s Ramat Gan branch, has frequently been seen in the company of Cohen and Sa’ar, and has also held meetings with Levin.