Arnon Bar-David, chairman of the powerful Histadrut labor federation, and his associate, insurance agent Ezra Gabay, are set to be released tomorrow to 30 days of house arrest under strict court conditions.
The decision comes amid an ongoing investigation into allegations of bribery, fraud, breach of trust, and money laundering involving the union’s internal operations.
The investigation, led by the Israel Police’s fraud unit, has focused on the pair’s business dealings and their influence over union committees.
Investigators said that a significant evidentiary basis has been developed against Gabay, whose insurance network allegedly benefited from preferential treatment in union-related decisions.
Both Bar-David and Gabay are set to be confined to their homes, banned from contacting individuals involved in the case, and prohibited from engaging in activities connected to the Histadrut or its affiliated entities during the house arrest period.
They are also subject to travel restrictions and financial guarantees.
Court hearings highlighted the gravity of the allegations.
'Deeply toubling' circumstances
The presiding judge described the circumstances as “deeply troubling,” noting that the case paints a picture of the Histadrut operating more like a private enterprise than a labor organization.
Under the terms of their release, both men will be barred from entering the Histadrut headquarters or related facilities beyond a 500-meter radius and may not interfere in union or insurance matters tied to the investigation.
Neither Bar-David nor Gabay has been formally charged yet, and both have maintained their presumption of innocence as the investigation continues.