Kfar Saba Economic Corporation CEO Ordered to House Arrest in Corruption Probe
Kfar Saba Economic Corporation CEO Sagi Chen has been ordered to house arrest in a major corruption case involving Mayor Rafi Sa'ar and his wife, though police have filed for a stay to appeal the decision.
A local court in Rishon LeZion has ordered the release of Sagi Chen, CEO of the Kfar Saba Economic Corporation, to six days of house arrest amid a sprawling public corruption investigation dubbed "Road to the Village." The decision, handed down by Judge Menachem Mizrahi, has been stayed for 24 hours to allow the police's Lahav 433 fraud unit (YAHAK) to file an appeal.
The high-profile corruption scandal, which broke on Monday, centers on allegations that Kfar Saba Mayor Rafi Sa'ar, his wife Meital, and municipal officials accepted hundreds of thousands of shekels in bribes from business figures in exchange for lucrative municipal tenders. Investigators have seized around 1 million NIS in cash across multiple raids involving 17 arrested suspects and seven detainees. Roughly 300,000 NIS of that sum was recovered from the mayor's residence and the home of his mother-in-law, where luxury watches and designer handbags were also confiscated.
Legal Arguments and House Arrest Conditions
During the remand hearing, defense attorneys Shay Gez and Bar Aslan argued that police were using detention to pressure Chen, a trained lawyer, into turning against the mayor and his wife. According to the defense, wiretaps presented by investigators merely show Meital Sa'ar pressuring Chen, while the CEO avoided carrying out illegal actions. "The police are not investigating him as a suspect, but trying to break him," Gez stated in court.
Police representatives countered that evidence gathered since the investigation went public points to a systematic scheme where public funds and municipal projects were diverted through the Economic Corporation to favor specific business figures. Investigators claim Chen acted on direct orders from the mayor and his wife, bypassing professional committees and sidelining officials who opposed their agenda.
Mayor and Wife Remain Detained
While Chen faces a 30-day ban from entering Kfar Saba alongside his house arrest, Mayor Rafi Sa'ar and his wife Meital remain in police custody until at least Monday. Meital Sa'ar has maintained her right to silence, while the mayor denies receiving any bribes, asserting he had no knowledge of his wife's alleged actions.
