More than 20 employees of the Ramat Gan municipality, including senior officials, suspected of corruption were detained for questioning on Monday.
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Officers from the Israel Police National Fraud Investigations Unit carried out the arrests at the officials' homes and at the entrance to the city hall.
The municipal workers allegedly exploited their position to offer jobs, secure tenders and offer other perks to people in exchange for their support of a particular candidate in October 2013 municipal elections.
They are suspected of bribery, election bribery, fraud and breach of trust, money laundering and tax fraud.
Several businessmen are also expected to be arrested on suspicion of benefiting from their support of said candidate.
Police confiscated documents and computers from the municipality and from the suspects' homes.
The arrests were made following a yearlong undercover investigation carried out with financial crimes and VAT units of the Tax Authority. As part of the investigation, police said they foiled an attempt by criminals to “infiltrate” and become integrated in the municipality.