Rafi Sa'ar, the mayor of Kfar Saba, and his wife were arrested as part of a more than a year-long investigation by the National Fraud Investigations Unit of Lahav 433.
Police also arrested 15 others in the public corruption scandal, including the director-general of Kfar Saba's economic development company and several businesspeople. Seven additional suspects were detained for questioning.
Investigators suspect that Sa'ar, other senior officials, and businesspeople were involved in serious corruption offenses, including bribery, fraud, and breach of trust.
According to police, those involved allegedly manipulated public tenders to unlawfully award contracts to local business owners in exchange for benefits and bribes, primarily paid in cash.
The tenders involved enormous sums of money and covered a range of municipal services, including cleaning, construction, and other areas of the municipality's operations.
Police have arrested or detained 24 suspects in connection with the case so far.
Police investigate alleged involvement of criminal figures
Police suspect that Sa'ar's wife played an unusually prominent role in the bribery scheme and in efforts to ensure certain businesspeople won contracts across various municipal sectors.
Investigators also believe that known criminal figures from central Israel were involved, either directly or indirectly, in the scheme over an extended period.
Police are examining whether these individuals helped secure tender awards and whether they were involved in acts of violence connected to the case.
During the undercover investigation, which lasted more than a year, Lahav 433 investigators used extensive intelligence resources and investigative methods to gather evidence and strengthen their suspicions against those involved.
On Monday morning, as the investigation entered its overt phase, police raided offices, businesses, and suspects' homes, searched premises, and seized money and property.
All suspects were taken to Lahav 433 headquarters for questioning.
Depending on the investigation's progress and findings, police are expected to request extensions of the suspects' detention at the Rishon Lezion Magistrate's Court.
The investigation is being conducted with the involvement of the Economic Department of the State Attorney's Office.