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Police probe fraud in Shas-linked schools accused of diverting public funds

The Israel Police's National Fraud Investigation Unit ofLahav 433opened an investigation after public funds intended for education were allegedly diverted to produce and distribute a children's newspaper affiliated with theultra-Orthodox Shas party, Ynet learned on Tuesday.

Police detained four suspects, including a government minister. According to investigators, the probe has been ongoing for several months, focusing on suspected fraud, breach of trust, falsification of corporate documents and money laundering.

Authorities suspect that budgeted education funds were unlawfully used to finance the publication and distribution of a children’s supplement in "HaDerech", a privately owned newspaper published by the Shas-affiliated Ma’ayan HaChinuch HaTorani school network.

During part of the period in question — 2017 to 2021 — Haim Biton, now a minister in the Education Ministry, served as the network’s director. The network had sought to launch the supplement as part of the newspaper, but legal advisors rejected the plan. The publication, named "Avivim", was ultimately produced through alternative means and allegedly contained prohibited political content.

As the investigation became public, police detained four suspects and conducted searches to seize relevant documents. Authorities added that the probe is ongoing.

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