A mayor in central Israel, his wife and the CEO of the city’s economic development corporation were arrested Monday on suspicion of accepting cash payments from businesspeople, including individuals with criminal ties, in exchange for rigging public tenders. A total of 17 suspects were arrested, including businesspeople and figures involved in local criminal activity, while seven others were detained for questioning. Those arrested are expected to appear in court in the afternoon for hearings on extending their detention.
The undercover investigation was conducted for more than a year by the National Fraud Investigations Unit, part of the Israel Police’s Lahav 433 major crimes division, under the command of Brig. Gen. Eli Makmel and with the involvement of the State Attorney’s Office’s Economic Department. Police raided 30 locations Monday morning as the investigation became public.
According to investigators, the mayor and his wife received bundles of cash from businesspeople in return for helping them secure lucrative contracts in real estate, rehabilitation and renovation projects, and transportation services. Sources familiar with the investigation told Israel Hayom the mayor’s wife served as the central figure through whom businesspeople and criminal elements operated. She and her husband allegedly worked together to ensure that those who paid them won municipal tenders.
Investigators suspect that when obstacles threatened to prevent favored bidders from winning contracts, the mayor arranged for the tenders to be transferred to the municipal economic development corporation. Police believe the corporation’s CEO knew in advance who was supposed to win and took steps to make it harder for competing bidders to succeed.
Police said they had received preliminary, unsubstantiated information about the alleged wrongdoing several years ago. The undercover investigation began more than a year ago after additional intelligence accumulated.
Investigators used intelligence-gathering methods and technological surveillance tools during the operation. According to police sources, evidence was collected showing the mayor’s wife receiving bundles of cash. During Monday’s searches, officers seized large sums of money hidden in waist bags, closets and a vehicle.
Sources involved in the investigation said the couple maintained an extravagant lifestyle, including luxury vacations and purchases of expensive watches, designer clothing and high-end vehicles. Investigators also suspect that some of the businesspeople involved acted as political vote brokers, helping the mayor win election. Criminal figures were allegedly sent on the couple’s behalf to deliver intimidating messages to bidders competing for municipal contracts.
“We will not allow a city’s assets to be sold off,” Brig. Gen. Eli Makmel, head of the National Fraud Investigations Unit, said Monday morning. “The mayor’s wife was the key figure. She fired people, made appointments and controlled budgets,” Makmel said. “Her husband, the mayor, was aware of his wife’s relationships with those individuals. Both of them expressed concern about a possible investigation.”
Source: www.israelhayom.com
