Jerusalem, 2 February, 2026 (TPS-IL) — Israeli police on Monday detained a mayor in southern Israel, along with senior municipal officials and several businessmen, on suspicion of embezzling millions of shekels in donations raised for civilians during the war.
The investigation centers on funds donated by individuals and organizations in Israel and abroad to support residents affected by the war with Hamas and the 2025 conflict with Iran. The case has drawn public attention due to the sensitivity surrounding wartime donations, many of which were given specifically to support communities under rocket fire or residents displaced by the fighting.
According to police, the donations — totaling tens of millions of shekels — were transferred to a community foundation associated with the municipality. Investigators suspect that significant portions of the money were then diverted for personal use by the mayor and his associates.
“Over the past few months, an undercover investigation has been conducted in the local authority,” police said in a statement. The statement added that the funds, which were “donated for the welfare of residents,” were ultimately “transferred to a community fund, and from there found their way into the private pockets of the head of the authority and his associates.”
The mayor was detained while he was in the southern resort city of Eilat. Other suspects — including municipal assistants, department heads, and businessmen — were taken from their homes and offices across the country and brought in for questioning.
Police allege that the suspected scheme involved fictitious business transactions. According to investigators, businessmen submitted false invoices to the community fund for services that were never provided. After receiving payment from the fund, they allegedly transferred part of the money back to the mayor and his associates, either in cash or through various benefits and favors.
Approximately two weeks ago, police raided the offices of the community foundation at the heart of the case. During that search, investigators seized documents that allegedly traced the flow of money from donors to the foundation and onward to individuals linked to the mayor.
“The documents collected show the path of the funds,” police said, adding that several million shekels intended for public welfare were allegedly misappropriated.
With the investigation now overt, police conducted searches on Monday at multiple locations connected to the suspects. All detainees were transferred to the National Fraud Investigation Unit within Lahav 433, Israel’s elite police unit that handles major corruption and organized crime cases.
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