Cops quiz former rail execs over fraud allegations
Why did Israel Railways pay top dollar for used train cars?
By Guy LeshemThe National Fraud Unit is questioning Israel Railways general manager Joseph Snir and businessman Moshe Kornick over a transaction to buy railway cars.
Kornick owns KGM, which represents a number of international transportation firms.
The investigation involves the Israel Railways' procedures inrespect to buying railway cars.
According to the State Comptroller report published a few months ago, Israel Railways allegedly altered its previously planned purchasing schedule during Snir's tenure, and began promoting a deal to import used train cars purchased from the Swedish government-owned rail company and renovated for Israel Railways.
According to the report, the terms of the transaction and the prices set were unattractive, and Kornick received unusually high brokerage fees.
Snir's son was employed by Kornick's company.
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