Ms. Shari Arison PHOTO | YOSSI ZELIGER
In the surreptitious realm of tender acquisition, where substantial amounts of money are involved, covert transactions are often hidden beneath the surface, concealed by a lattice of deceit.
This was the scenario in Kenya, where underhand transactions involving Israel’s top construction company, Shikun & Binui Ltd., and government officials were orchestrated to secure local contracts.
As per the police, Shikun & Binui Ltd., previously owned by Shari Arison – the wealthiest woman in Israel, indulged in a Sh15 billion corruption scheme to secure road contracts worth billions of shillings through bribing Kenyan officials.
In May 2019, the Lahav 443 Unit, which handles fraud investigations, claimed that after a year’s investigation they had accumulated enough evidence of malpractice to suggest charges of bribery against the company and Ms Arison.
“Sufficient evidence against Shikun & Binui Company Ltd. and against several senior employees has been collected,” a police statement announced.
It is alleged that the company paid the bribes either directly or via other companies, including AG SBI, a Swiss private firm owned by Shikun & Binui Ltd.
The police suspected that from 2008 to 2016, the company systematically paid bribes to foreign public officials in Africa to enhance its profits.
Confiscated documents
The investigation kicked off in February 2018.
A number of senior workers of Shikun & Binui, including those who had left the firm, were apprehended while police searched offices, confiscated documents and computer materials.
According to the police, the investigation was comprehensive and intricate, involving hundreds of investigative activities both in Israel and internationally.
50 suspects were interrogated in total, and the statements of 34 witnesses were recorded.
Simultaneously, Kenya’s anti-corruption authority and the Israeli police conducted two investigations, which resulted in the arrest of 19 Kenyan public workers.
Ms Arison, who sold her majority stake in Shikun & Binui in 2018, was interviewed by the police for nine hours regarding her role in the scheme.
She and one of her senior advisors were restrained from leaving Israel or reaching out to anyone related to the investigation.
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The interrogation occurred just two months after Ms. Arison sold her stake to US-Israeli real estate investor Naty Saidoff for $307 million – a price 14% lower than the stock value, which analysts have attributed to the bribery allegations.
However, the billionaire emphasized that the sale was intended to diversify investments.
Shares of Shikun & Binui dropped 23% in the 12 months preceding the sale as the company dealt with the bribery investigation.
Millions of shekels
Based on the evidence collected, in Kenya alone, where the investigation was centered, bribes amounting to tens of millions of shekels were paid.
Following the investigation, the police discovered evidence implicating several employees in bribery, forgery of corporate documents, conspiracy to commit a crime, hindrance of legal proceedings, money laundering, and misleading reporting under the Securities Law.
The investigation file was subsequently sent to the State Attorney’s Office for evaluation.
More than two years later, in November 2021, the State Attorney decided not to charge Ms Arison in the bribery case, stating a lack of evidence that she was aware of such bribery offences being committed by her company employees.
However, Shikun & Binui and its executives were found culpable of the offences.
It was reported afterward that the company was in advanced negotiations with the State Attorney’s office to reach a settlement concerning the offences.
As per the agreement, Shikun & Binui was to pay a massive fine provided that the bribery charges were dropped. Sources stated that the fine would total a record $54 million.
No additional details of the case were ever revealed.
