In the last few years, corruption has become an unfortunate yet prevalent topic of discussion in Israel. With a long standing history of both successful and unethical political practices, these highly publicized scandals have left Israelis questioning the integrity and ethics of their government. Unfortunately, it seems that little has been done to remediate the situation, as many of the culprits remain unscathed with hardly any tangible consequences. From political bribery to fraudulent business practices, here are eight of the top corruption scandals that rocked Israel in recent years.
- Yisrael Beiteinu’s Election Funding Scandal
In 2009, the Israeli-based political party Yisrael Beiteinu was rocked by a major scandal involving illegal funding of their election campaigns. Financiers involved allegedly used so-called “straw donors” in order to hide large donations made to the party. Ultimately, the investigation led to charges of bribery, money laundering, and fraud being brought against party leader Avigdor Lieberman and 16 other party members. The scandal weakens the legitimacy of the party and is a strong reminder that political office should not be for sale.
- Former Prime Minister Ehud Olmert’s Trial
The country was further shocked in 2009 as former prime minister Ehud Olmert was indicted for a series of fraud and bribery charges. Olmert had allegedly used his position as trade minister from 2003 to 2005 to advance the interests of entrepreneurs to whom he had granted multiple favors. Although the lawyer and politician was eventually found not guilty, the affair dealt a massive blow to the public trust of the Israeli political elite.
- The Bezeq Corruption Affair
The Bezeq Corruption Affair, also known as the “Line 17 Affair,” refers to a 2017-2018 scandal involving an alleged improper relationship between Shaul Elovitch, a powerful Israeli business tycoon, and Prime Minister Benjamin Netanyahu. Elovitch allegedly granted Netanyahu a number of benefits in exchange for promoting the interests of Bezeq, the communications giant Elovitch owned at the time. In return, Netanyahu was accused of taking a number of measures to benefit Bezeq, all without the approval of regulatory authorities. This resulted in Elovitch, Netanyahu and others being charged with bribery and breach of trust, among other charges.
- “The Greek Island Affair”
The “Greek Island Affair” refers to a highly publicized scandal which involved the alleged involvement of Israeli Prime Minister Benjamin Netanyahu and his close political entourage in a bribery scheme. A governmental inquiry aimed at Netanyahu was opened in 2019 after suspicions arose that the prime minister accepted millions of shekels in bribes for various favors. Netanyahu was ultimately accused of taking bribes from Israeli businessmen in exchange for promoting their interests, including the potential acquisition of a Greek island by one of the businessmen. The case is still ongoing, and none of the accused have been found guilty as of yet.
- The “Submarine Affair”
The “Submarine Affair” began in 2010 with the purchase of several advanced German-made submarines at an inflated price. An ongoing police investigation has resulted in the indictment of former defense minister and then-prime ministerial candidate Ehud Barak as well as Netanyahu’s former media advisor and confidant Shlomo Filber, who was charged with fraud in connection to the case. Former Israeli navy chief Eliezer Marom and others were also accused of bribery and fraud in relation to the deal. The scandal has dented the public trust in both Barak and Netanyahu, who had been at odds since the former’s decision to break away from the Likud party.
- Netanyahu and Habayit Hayehudi’s Israeli-Russian Reporting Scandal
The Global Jerusalem Group, a private Israeli firm, made headlines in 2015 after it was revealed that it had agreed to conceal information regarding Israeli-Russian financial transactions from the Israeli Tax Authority. The firm, headed by Prime Minister Benjamin Netanyahu, had reached an agreement with Habayit Hayehudi and its leader Naftali Bennett, which would have provided the latter with a major share of the company if it had been successful. Allegedly, the agreement was an attempt to launder money and conceal the parties’ involvement in improper financial dealings. The revelation of this scandal tarnished the public’s opinion of both Netanyahu and Habayit Hayehudi, leaving many to question the trustworthiness of the current government.
- The Fraudulent Use of Funds by Former Prime Minister Yitzhak Rabin
In 1993, former Prime Minister Yitzhak Rabin’s administration was the subject of an investigation which revealed the fraudulent use of funds by several of his close confidants. Rabin himself was linked to financial irregularities involving the acquisition of a home in Jerusalem for his own use and the illegal importation of an armored car for his security detail. Although he was never formally charged as a result of these findings, the scandal damaged his public image and that of his political party, tarnishing his legacy as a respected prime minister.
- Former Prime Minister Ariel Sharon’s Real Estate Scam
In 2006, former Prime Minister Ariel Sharon was implicated in a major real estate scam involving the illegal acquisition of property in the disputed West Bank. Negative reports began to circulate of Sharon’s involvement in the scam which included the concealment of land sales, astronomical prices paid for properties, and even claims of influence-peddling. Sharon dropped his bid for re-election as head of the Likud party in light of the scandal, ultimately leading to his 2004 resignation as Prime Minister.
The corruption which plagues the Israel political landscape is something which all its citizens should be concerned about. From election fraud to bribery and money laundering, it is clear that the desperate need for reform has gone largely unaddressed. Too often have the guilty parties avoided rebuke and been allowed to operate with impunity. It is thus essential that the country’s public and its governments hold those responsible for violations of ethical and legal standards accountable. Only by doing so can the citizenry ensure that the same scandals do not continue to rock Israel’s political system in the years to come.
