The case concerns the company’s activities in Botswana, which was a central focus of its business during the relevant period.
According to the facts of the indictment to which the company admitted, the company established business ties with a governmental body in the country – the Directorate of Intelligence and Security (DIS) – headed by Seabelo Isaac Kgosi, who was defined as a foreign public official. This was done with the intention of advancing its business interests.
In order to maintain the connection with the head of the DIS, the company granted him various benefits at his request, including electrical products, luxury equipment, and toys, with a total value of NIS 58,720.
To conceal the action, the company recorded the expenses in its documents as “legitimate expenses” of projects in Botswana, thereby creating a false record and attempting to disguise the origin of illicit property within the framework of money laundering activities.
The court found the plea agreement to be appropriate and approved it, convicting the company based on its admission of offenses of false recording in corporate documents and money laundering.
The prosecution presented to the court the sentencing considerations based on the State Attorney’s Directive No. 1.14, which establishes the principles of enforcement policy in cases of prosecution and sentencing of corporations. The court accepted the position that the severity of the offenses and the economic motive underlying them, with the intention of gaining an unfair business advantage, necessitate significant financial punishment that will serve as a deterrent to other corporations. On the other hand, the company’s admission of the charges against it and its full assumption of responsibility, which saved considerable judicial time; its difficult economic situation after the investigation was opened – reflected in the cessation of its operations, the dismissal of its employees, and the closure of its offices; and the relatively limited scope of the benefits, which were given over a period and not in large sums, were considered in mitigation.
Based on these considerations, the court imposed the following penalties on the company:
- A monetary fine of NIS 1,541,280, which will be transferred to the forfeiture fund.
- Forfeiture of NIS 58,720, equivalent to the value of the benefits provided to the foreign public official.
The State was represented by the Tel Aviv District Attorney’s Office (Taxation and Economics).
To read the verdict and sentence.