The prosecution notified three figures on Tuesday that they may face criminal charges, pending a hearing, in a long-running investigation into alleged illicit lobbying and misconduct tied to pharmaceutical company Roche Israel, as well as former aides to then-deputy health minister Ya’acov Litzman.
The notified individuals are Avi Danziger, CEO of Roche Israel; Menachem (Motti) Gashaid, a lobbyist and former professional aide to Litzman; and Mordechai (Moti) Babchik, another former Litzman aide.
Babchik is a significant figure in the ultra-Orthodox political landscape, especially within the sphere of influence of United Torah Judaism, which Litzman was a part of for his entire political career. From his early days as a subordinate to Litzman, Babchik rose to become a major adviser and operator, wielding power behind ministries and policy decisions. His close affiliation with Gur Hassidism and UTJ’s leadership makes him a key node between haredi politics, government ministries, and industry lobbying.
The probe, led by the National Fraud Investigation Unit and the Lahav 433 National Crime Unit, centers on efforts that took place between 2015 and 2018 to adopt a new nationwide drug-pricing model intended to lower medicine costs in Israel. Investigators said that the proposed pricing overhaul threatened profit margins for some multinational pharmaceutical firms operating locally, including Roche.
Monthly sums paid to Gashaid from Daziger, police find
According to the police findings noted by the prosecution on Tuesday, Danziger allegedly paid Gashaid monthly sums “in the tens of thousands of shekels” over roughly 18 months. The prosecution said that those payments were intended to leverage Gashaid’s contacts at the Health Ministry and to enlist Babchik – a close associate from their time in Litzman’s office – to favor Roche and advance its position on the pricing model.
The announcement by the prosecution describes a “direct and covert” communications channel between Gashaid and Babchik operating alongside formal channels between Roche (and Pharma Israel, the industry association chaired by Danziger) and officials at the Health and Finance ministries. Babchik is accused of acting in breach of his duties – allegedly promoting Roche’s interests and passing internal Health Ministry documents to Gashaid without disclosing their relationship.
When the new pricing model was passed in May 2018, it reportedly did not serve Roche’s commercial interests. Following that outcome, Gashaid was dismissed from his role with Roche.
Investigators noted that the case file contains evidence supporting offenses of intermediary bribery (against Danziger and Gashaid) and fraud and breach of trust (against Gashaid and Babchik); formal indictments will depend on the outcomes of the statutory pre-indictment hearings.
In response, attorneys Amit Hadad and Noa Milstein, representing Babchik, said, “This is an investigation that began nearly 10 years ago. In 2023, Mr. Babchik was officially informed that the case against him had been closed. Once again, we are forced to learn from the media that the prosecution decided to file an indictment pending a hearing... It is unacceptable that Mr. Babchik should hear of such a significant decision first from a media report, and only a day later receive formal notice... We are confident that following the hearing, the case will be closed.”
The original criminal inquiry, which included arrests and raids in 2021, drew wide media coverage and public attention to pharmaceutical lobbying and potential conflicts within the Health Ministry apparatus. The investigation touches on how drugs are priced and approved for public funding in Israel, processes that carry major fiscal and public-health consequences. If prosecutors press charges, the trial phase could spotlight the boundaries between lawful lobbying, the use of personal networks inside the government, and criminal influence peddling.
The prosecution will next hold the required hearings for each notified individual. If prosecutors decide to file indictments after those hearings, the case will move to the courts; otherwise, the matter may be closed without charges.