Magen David Adom Chief Questioned in Tax Fraud Probe

Ambulance services' chief executive Eli Been investigated over suspected use of tax breaks for personal gain.

The head of Israel's Magen David Adom emergency medical service was questioned by police on Tuesday for alleged tax fraud.

Magen David Adom CEO and other senior managers are suspected of manipulating for personal gain tax breaks granted to the organization .

Magen David Adom chief executive Eli Been, Ferbruary 23, 2010

Police sources said Been would tremain in custody for several hours, after which a court was expected to free him on bail.

The investigation follows a raid on the MDA headquarters in Tel Aviv by tax authorities, who employees said confiscated a number of documents.

Workers from the MDA's logistics, transport, procurement and financial departments were also questioned over a suspected tax fraud connected with the purchase of ambulance equipment.

"In accordance with the 'Magen David Adom' law, which grants [the organization] full exemption from taxation, MDA has approached customs and VAT authorities with the aim of clarifying the issue of tax on medical equipment," MDA said in a statement.

"For some six weeks now checks the authorities have been carrying out checks with the full cooperation of the MDA. During the course of the investigation, MDA managers, both junior and senior, provided testimony, including the manager of the financial department and the chief executive."