Serious audit findings: 2.2 million shekels of Best funds financed work on properties of controlling shareholders
An audit at the Best group revealed that 2.2 million shekels from a subsidiary were used to pay for private property work for controlling shareholders. The company will restate its 2025 and Q1 2026 financial reports.
The audit being conducted at the Best group following concerns about irregularities has yielded more serious findings than initially reported: invoices totaling approximately 2.2 million shekels for private work on properties of the controlling shareholders and their relatives were paid from the funds of a subsidiary, without the controlling shareholders being charged.
This is a significant development in the affair exposed last week, shortly after Best, controlled by the Tanous family, became a public company. The new report indicates that the volume of funds improperly withdrawn was significantly higher than initially reported.
According to the draft audit report, between September 2025 and June 2026, the subsidiary paid invoices totaling approximately 2.195 million shekels, including VAT, for private work performed by subcontractors. With the addition of interest, the amount reached approximately 2.286 million shekels, and Best stated that the controlling shareholders have now repaid the full amount.
The audit has expanded to additional projects. Regarding payments of approximately 2.2 million shekels transferred via a subcontractor to third parties, the audit found that the funds were used for project needs, but the payments were made outside of company procedures and included in the project's contingency item. Additionally, approximately 100,000 shekels were paid to a third party illegally.
The audit is not yet concluded: the auditor is examining concerns regarding additional irregularities of approximately one million shekels. Following the findings, Best determined this is a material error and will restate the 2025 and first-quarter 2026 reports. The correction is expected to increase net profit by approximately 310,000 shekels in 2025 and by 468,000 shekels in the first quarter of 2026.
The affair occurs during a sensitive period for corporate governance at Best. The company became public on June 3, and no external directors, audit committee, or internal auditor have yet been appointed as required by law.
