In a new development in the Histadrut financial scandal, police have arrested the organization’s former treasurer, Authur Yisraelovitch, after he was accused of unlawfully withdrawing funds from the labor union.
The Histradut scandal erupted last month amid reports that police officials were investigating Labor Party leaders who allegedly misappropriated Histradut funds for their own political purposes.
Yisraelovitch is the highest ranking official to be questioned by the National Fraud Squad in connection to the illegal withdrawal of millions of shekels from Histadrut funds by Labor Party members during the last elections.
Israel Radio, citing senior police sources, reported that his questioning focused on four checks, totaling 600,000 shekels — or about $200,000 – – illegally used to fund the Histadrut campaign of Haim Haberfeld, former head of the Histadrut.
Another former Histadrut official, Dan Cohan, was arrested on charges of complicity in unlawfully withdrawing funds.
The labor federation represents more than 50 percent of the Israeli work force.
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