A contractor who served as a key witness in a sprawling corruption case involving the Histadrut labor federation committed suicide on Sunday and was found on Monday, after having given testimony to police investigators regarding work performed at the home of Arnon Bar-David, the federation’s chair.

The case, which law enforcement has described as among the largest public-sector corruption investigations in Israeli history, centers on alleged collusion between Bar-David and an insurance industry figure, Ezra Gabay, in a scheme involving appointments, transfers, and preferential treatment in return for financial benefits.

Authorities discovered the body of the contractor in Ben Shemen Forest on Monday. He had been summoned to give a statement regarding renovations at Bar-David’s residence and was not under arrest or designated as a suspect.

The police said that there has so far been no indication of foul play surrounding the man’s death.

Histadrut's case current state

As for the broader investigation, it has already led to dozens of arrests and interrogations. Investigators allege that Gabay used his close ties to Bar-David to influence the selection and placement of senior staff in municipal corporations and state-owned companies, while receiving lucrative contracts and financial advantages in return.

Arnon Bar-David, Chairman of the Histadrut, speaks at a press conference attended by heads from the Israeli commerce sector attend a press conference at the Histadrut Union in Tel Aviv on March 27, 2023
Arnon Bar-David, Chairman of the Histadrut, speaks at a press conference attended by heads from the Israeli commerce sector attend a press conference at the Histadrut Union in Tel Aviv on March 27, 2023 (credit: AVSHALOM SASSONI/MAARIV)

Bar-David has acknowledged receiving funds from Gabay, but has characterized them as loans.

The suicide of a cooperative witness in such a high-profile affair raises fresh questions about the pressures faced by individuals involved in large corruption probes, while also deepening the reputational damage to the Histadrut, an organization established to represent workers but now at the center of one of Israel’s most serious institutional scandals.