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Police detained 12 suspects, including IDF officers, on Monday on suspicion of committing acts of bribery and fraud.
Among the suspects are two military officers and 10 employees of a civilian company providing infrastructure services to IDF bases.
They allegedly fraudulently billed the army large sums of money for years for works that were not carried out.
The two IDF officers, a lieutenant colonel and a major, were responsible for the tenders for outside contractors.
They are suspected of reporting works that have been carried out by these contractors, at the cost of millions of shekels, even though that was not the case.
In return for their false reports, the two allegedly regularly received kickbacks and bribe money over a number of years.
The police's Lahav 433 anti-fraud unit has been investigating the case for over a year. Investigators raided the suspects' offices and seized computers and documents tying them to the alleged offenses.
After they finish examining the seized materials, investigators will decide whether to seek a remand extension for the officers.