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Police investigating the Peled-Givony affair yesterday arrested Yitzhak Shenhav, former vice president of finance of Feuchtwanger Industries and two of its subsidiaries, Afcon and Afcon Electro-Mechanics. He was later released on bail of NIS 550,000.

The Securities Authority suspects Shenhav may have been involved in irregularities at the Peled-Givony group, including failure to submit financial reports and falsifying corporate documents.

According to Shenhav's bail report, he was allegedly a partner to the transfer of NIS 30 million from the Peled-Givony group's listed companies to the private company KDI, which is controlled by Tal Jaegerman, another suspect in the affair.

The Securities Authority yesterday said Shenhav was questioned several times two months ago, but was not detained as the authority had not been convinced there was reasonable suspicion he had committed an offense.

At the time, the other suspects in the affair, Rafi Peled, Arieh Givony, Tal Jaegerman and David Haby, were detained and released on bail. There have been recent reports that Shenhav would turn state's witness, but the authority refused to comment.