Alon Hassan, head of the Ashdod port union, has been placed under house arrest and barred from entering the port for 90 days as police continue to investigate alleged improprieties.
Authorities claim that he was able to illegally steer business to the Dana Port Group, which is headed by his friend and former business partner, Yaniv Balter.
Speaking in court, Mr Hassan claims he is being framed as a means of preventing him from undertaking union activities.
Under the investigation, 15 Ashdod port employees have been arrested, in addition to former chief executive Shuki Sagis. Those under investigation are suspected of channelling at least $5m into their own bank accounts through money laundering, extortion and tender rigging. Also arrested is Jacky Ben-Zaken, the controlling shareholder of Shemen Oil and Gas Resources.
In an unrelated move, Yoav Zuckerman, who has been VP at the Israeli Ports Company for the past six years, has stepped down from his post. He was very much the driving force behind the strategic master plan that will lead to construction of private ports at both Haifa and Ashdod. He explained his decision to quit the post by pointing out that development plans have now been approved, thereby completing his work.
