Work at his home at the expense of the IPS: The construction officer convicted of corruption

Arkady Shkhovitsky, a former construction officer for the Israel Prison Service, was convicted of bribery, theft, and money laundering totaling approximately 350,000 shekels. The court determined that he exploited his authority, dictated subcontractor identities to contractors, inflated bids, and performed private work at his home at the expense of the IPS. Seven other defendants were also convicted in the case.

The Central-Lod District Court today (Monday, October 12, 2026) convicted Arkady Shkhovitsky, a former construction officer for the Central District of the Israel Prison Service, of a series of serious corruption offenses: bribery, theft by a public servant, and money laundering, totaling approximately 350,000 shekels. The case was dubbed "The Silver Cage." In the verdict, spanning over 300 pages, the court determined that Shkhovitsky exploited his position to dictate subcontractor identities to primary contractors, influence work pricing, and order bid inflation. Additionally, he performed private work at his home, part of which was funded from the IPS budget. Shkhovitsky was convicted along with his wife, Natalia, of serious tax offenses after they omitted income from bribery, theft, and property rentals. The court rejected his claims of a "stitched-up case." Seven other defendants were also convicted in the case.