The Israel Police today arrested former Bank Hapoalim chairman Dan Dankner in the Holyland affair. A gag order preventing the publication of his name was recently lifted.
Dankner's arrest is apparently not directly connected to the Holyland affair. He is suspected of giving bribes to then Israel Lands Authority chief Yaakov Efrati, who has also been arrested, in connection with use of land by Salt Industries in Atlit and Eilat.
The bribes were allegedly given in order to change land zoning from agriculture to building.
Judge Avraham Heiman said, "In view of the suspicions placed in front of me regarding Dankner's involvement in such corruption, I grant the request by the police in full."
Dan Dankner is suspected of paying bribes, conspiracy to commit a crime, registering false corporate documents, fraud and breach of faith in a corporation, money laundering and tax evasion. One property apparenlty involved is a house on the Israel Salt Industries Ltd. compound in Atlit, which Dan Dankner built nine years ago. His ex-wife now lives in it. The lot was originally occupied by a building used to house Salt Industries employees. Dankner bought the property, and built a large house on it. Several local residents as well as the Movement for Quality Government in Israel claim that it is impossible to obtain a building permit for the house. Dankner reportedly tried to obtain a permit, but failed to do so. In any event, the house is on Israel Land Administration (ILA) land, and claims of major building violations are in effect against it.
Another case is the salt pools agreement signed by Ehud Olmert when he was minister of industry, trade and labor and responsible for the ILA, to rezone huge areas of land owned by Salt Industries in Atlit and Eilat for residential use. The agreement caused a public storm, including sharp criticism by the State Comptroller, and then-Attorney General Elyakim Rubinstein blocked the deal.
An opinion by the Jewish National Fund legal counsel to the ILA Council in 2003 stated that the land benefit to Dankner as part of the rezoning was illegal and gave Salt Industries an improper benefit of tens of millions of shekels.
There is also a Salt Industries offices in Atlit, a six-year old building in the company compound, allegedly without a building permit although one was issued after the fact.
In a separate development, at a press conference today, the attorney for former prime minister Ehud Olmert's bureau chief Shula Zaken, Adv. Micha Fitman said, "Reports that Zaken will sign a deal to become a state's witness in the Holyland affair are utter nonsense, and cause pain to Zaken and her family. The police and prosecutor should check to see who has an interest in publishing such reports."
Earlier Fitman said that the press conference would be "dramatic". He recently met with Zaken in the US.
Fitman said, "There have been rumors and gossip in the media in the past few days about contact Shula Zaken has had about an agreement to be a state's witness in the Holyland affair. In light of this, we found it proper to issue a clarification in order to get the facts right.
"As you know, Zaken is now on trial. Zaken is currently on family leave abroad, after obtaining court permission to go. Her return to Israel has been delayed for various reasons. In addition, her summons to the inquiry in Israel is not urgent. She will return to Israel next week."
Fitman concluded by denying the allegations against his client. He said, "Ms. Zaken hopes that the investigators will be persuaded of the truth of her claims in the Holyland and other affairs, and that the truth will emerge."
Earlier, the Office of the State Prosecutor announced, "Following requests by correspondents seeking clarifications, there is no truth in the reports that the Police or the Prosecutor's Office has, or has had, any contact with Shula Zaken. The source behind the reports is neither the Police nor the Prosecutor's Office. On this point, the only fact reflecting reality is that Zaken was summoned for questioning over a week ago, and, as is known, she has not yet made an appearance."
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2010
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