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Last update - 03:36 03/08/2007
Suspects allegedly blackmail supermarket chain for millions
By Roni Singer-Heruti and Gali Berger, Haaretz Correspondents

The police Thursday released limited details of a blackmail case involving the sale of expired meat at an outlet of the Mega supermarket chain in Ra'anana. The police said they arrested two suspects on suspicion of attempting to force Mega's parent company Blue Square Israel to pay them NIS 25 million and another NIS 5 million for their lawyer. One of the suspects, a former employee, said that if Blue Square didn't pay the sum, they would release video footage showing Mega in Ra'anana selling meat past its expiration date, according to Blue Square associates. The associates said that he threatened to file a NIS 500 million class-action suit against Blue Square if it failed to meet the demands.

Blue Square filed a complaint two weeks ago to the Central District Fraud Squad regarding the alleged blackmail. The police opened a covert investigation leading to the suspects. A gag order has been placed on the names of the suspects. Police arrested them along with their lawyer for questioning but allowed them a conditional release. They transfered the materials seized from the suspects to the Health Ministry to check whether their claims against Mega were valid. Mega asserts the tape is fabricated.

It was also discovered that the suspect sent an acquaintance to the meat department in Mega's Ra'anana Park branch to find the flaws in its operations. The idea was to reenact the 2006 Tiv Ta'am affair, when the Kolbotek television program reveled that the chain was apparently selling rotten chicken, which damaged the company's reputation.

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The second suspect filmed chickens in the grill and tried to claim that rotten chickens were being placed in it.

After filing the complaint, Blue Square did their own follow up on the meat department in question for about a week to find out if it was indeed operating as it should.

Blue Square CEO Gil Unger said, "We won't be a victim of blackmail. We turned to the police because this is the right way to go in any event of blackmail, and that's what we'll do in future. We are convinced the greater public and media won't lend a hand to blackmail, and we'll continue to provide professional, reliable service to our customers."

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