Israel's biggest labor corruption case reaches one of its biggest insurers
Police froze NIS 183 million in assets belonging to Menora Mivtachim and several senior executives as the investigation broadens.
A major development emerged this week in the corruption investigation involving the Histadrut, Israel's largest labor federation, which represents hundreds of thousands of workers across the public and private sectors.
On Monday, it was revealed that the Israel Police had ordered the freezing of approximately NIS 183 million ($54 million) in assets belonging to Menora Mivtachim and several of its senior executives. The move is intended to preserve the funds for possible forfeiture should indictments be filed and the suspects ultimately be convicted.
Menora Mivtachim is one of Israel's three largest institutional financial groups. It manages more than NIS 300 billion ($89 billion) in assets, holds roughly one-third of Israel's pension market, finances major infrastructure, transportation and real estate projects, and is a leading provider of auto and property insurance through a nationwide network of thousands of insurance agents.
Among the executives whose assets were frozen are Ari Kalman, CEO and controlling shareholder of Menora Mivtachim Holdings; Yehuda Ben-Assayag, chairman of Menora Mivtachim; Eran Griffel, chairman of Menora Mivtachim Holdings; Michael Kalman, CEO of Menora Mivtachim Insurance; and Orit Kramer, deputy CEO and head of the company's health division. According to investigators, the frozen funds correspond to bonuses and compensation allegedly linked to the transactions under investigation.
The Menora investigation is part of the broader corruption probe involving the Histadrut. At the center of the case are allegations that the insurer paid millions of shekels in commissions and other benefits to insurance broker Ezra Gabbay. According to investigators, Menora paid Gabbay commissions of between 8% and 11% of policy premiums in exchange for leveraging his personal relationship with Histadrut chairman Arnon Bar-David.
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The investigation focuses on the "Healthy Together" supplemental health insurance policy, which covers more than 300,000 Histadrut members. Police suspect that since 2019, Menora used Gabbay to secure and repeatedly renew the policy despite the Histadrut itself not providing financial support for the program.
Investigators are examining suspected bribery through an intermediary, alleging that payments to Gabbay were intended to influence Bar-David to advance the company's commercial interests.
A sweeping corruption investigation
The broader corruption investigation first became public in November 2025, following a covert probe that lasted nearly two years. During the initial police operation, several senior Histadrut officials were arrested, including chairman Arnon Bar-David and his wife, Hila Bar-David. The investigation includes allegations of bribery, fraud, breach of trust, money laundering and tax offenses.
The case extends beyond the Histadrut and includes public officials, labor leaders and political figures. Those questioned include the chairman of the Israel Railways workers' committee, the chairman of the El Al workers' committee, several mayors and senior municipal officials.
Police believe the investigation will continue for months as investigators analyze thousands of documents and digital files, alongside approximately 400 witness statements collected from more than 175 individuals questioned.
Among those questioned under caution was Culture and Sports Minister Miki Zohar, who is suspected of assisting Gabbay in obtaining insurance-related business opportunities. Zohar has denied any wrongdoing, saying his relationship with Gabbay reflected legitimate business ties and did not constitute a criminal offense.
The affair has also renewed scrutiny of the political influence of Israel's insurance broker lobby and its role in shaping regulation and opposing reforms affecting the insurance industry.
The involvement of Menora Mivtachim significantly raises the stakes of the investigation given the company's central role in Israel's financial system.
Beyond managing more than NIS 300 billion in assets, Menora operates Israel's largest comprehensive pension fund, with roughly 30% of the country's new pension market. More than one million Israelis save for retirement through the group.
Its size also makes it a major financier of infrastructure, transportation and real estate projects, while its insurance operations and nationwide network of agents make it one of the country's most influential financial institutions.
In a filing with the Tel Aviv Stock Exchange, Menora Mivtachim said the asset freeze does not affect its financial stability or day-to-day operations. The company said it and its executives are cooperating fully with investigators and providing all requested information.
According to the filing, the executives who were questioned have been released under restrictive conditions and have returned to their positions.
