Two senior municipality officials allegedly accepted bribes to reduce municipal fees for contractors and developers.
A huge embezzlement has been discovered at the Tel Aviv municipality. The municipal billing department manager and the official responsible for auditing and calculating construction and infrastructure fees and charges, who belongs to the municipal engineering department are suspected of accepting bribes to charge contractors and developers lower municipal fees and charges. The financial loss to the Tel Aviv municipality from the affair is estimated in the millions of shekels. The Israel Police arrested the two officials yesterday.
The investigation began following a joint audit by the municipal auditor and Barlev & Co. Accountants, which specializes in investigative accounting. The investigation raised suspicions that the two officials, together with their colleagues, had accepted payments from parties seeking to reduce their debts to the municipality. NIS 50,000 was seized in a search of the suspects’ homes. The officials are suspected of accepting envelopes, each of which contained NIS 15,000 in cash. The investigation is only beginning, and additional arrests are expected.
Published by Globes [online] - www.globes.co.il - on February 2, 2004