Israel Prime Minister Benjamin Netanyahu. (File)Written by David M. Halbfinger
After an investigation of more than two years, Israel’s attorney general, Avichai Mandelblit, announced Thursday that he planned to indict Prime Minister Benjamin Netanyahu on charges of bribery, fraud and breach of trust.
Netanyahu, who denies any wrongdoing and says he is being persecuted by Israel’s left, is entitled to a hearing before an indictment is formally issued.
But if he fails to persuade Mandelblit to back down, he would become the first sitting prime minister in Israel to face criminal prosecution.
Here is a summary of the allegations against Netanyahu, as well as the charges Mandelblit is pursuing and his reasoning for doing so. It is based on documents released Thursday by the Ministry of Justice.
Gifts for Tax Favors
THE PLAYERS: Arnon Milchan, the Hollywood producer; James Packer, an Australian billionaire.
THE QUID: Expensive cigars, jewelry and pink Champagne flowed abundantly into the prime minister’s official Jerusalem residence, sometimes at his or his wife’s request, but always with the compliments of Milchan or Packer, whom Milchan enlisted to share the cost of the gifts. The value of the gifts came to hundreds of thousands of dollars.
THE QUO: Netanyahu promoted the extension of a 10-year tax exemption to expatriate Israelis returning to the country, which could benefit Milchan financially. The Finance Ministry blocked the legislation, saying it was against the national interest and fiscally unsound. Packer is not accused of receiving anything in return for his gifts to the Netanyahus.
THE DECISION: Netanyahu should be charged with fraud and breach of trust. Because it was impossible to prove that the gifts were given to Netanyahu because of his position, the case does not meet the threshold for bribery.
A Proposed Deal for Good Press
THE PLAYERS: Arnon Mozes, the publisher of Yediot Ahronot, a leading Israeli daily newspaper; Sheldon Adelson, the Las Vegas casino magnate, a devoted supporter of Netanyahu’s and the financial backer of Israel Hayom, a rival paper; Ari Harow, Netanyahu’s former chief of staff, who turned state’s evidence.
THE QUID: Netanyahu discussed with Mozes the possibility of using his influence with Adelson, and perhaps of advancing legislation, to curb the circulation of Israel Hayom, which has long been seen as slavishly promoting Netanyahu’s interests.
THE QUO: In return, Yediot Ahronot would treat Netanyahu and his family more favorably and “help him succeed in upcoming elections,” according to Mandelblit.
THE CATCH: The trade was discussed, including on phone calls recorded by Harow, but was never consummated.
THE DECISION: Netanyahu should be charged with fraud and breach of trust. The evidence did not sufficiently prove that he had “requested or made a bribe,” but he “violated the duty of trust owed to the public.” Mozes should be charged with bribery.
A Done Deal for Good Press
THE PLAYERS: Shaul Elovitch, a media tycoon and friend of Netanyahu’s; Shlomo Filber, the director-general of the communications ministry under Netanyahu; and Nir Hefetz, the Netanyahu family’s public relations adviser. Filber and Hefetz became government witnesses.
THE QUID: While serving as prime minister, Netanyahu also held the post of communications minister from 2014 to 2017. Elovitch, who had long shared ownership of the Yes satellite network with Bezeq, Israel’s biggest telecommunications company, bought a controlling stake in Bezeq in 2010. Heavily in debt, he arranged for Bezeq to buy Yes in 2015 for several times more than independent valuations showed Yes was worth. The communications ministry under Netanyahu aided several of Elovitch’s moves, effectively helping him reap tens of millions of dollars. The police said they had seized about $32 million in ill-gotten gains.
THE QUO: Bezeq also owns Walla, one of Israel’s leading news sites. At the direction of Elovitch and Hefetz, Walla consistently provided gauzy coverage of Netanyahu and his wife, suppressing or softening critical reports, padding inconsequential items with flattering photographs and acceding to hundreds of the couple’s demands. The demands increased around the 2013 and 2015 elections and during coverage of scandals involving the Netanyahus.
THE DECISION: Netanyahu should be charged with bribery, fraud and breach of trust. Elovitch should face prosecution for bribery, obstruction of justice, money laundering and a securities violation. Though Netanyahu’s wife, Sara, was “very involved in the demands” of Walla, there was insufficient evidence that she knew what official action was being provided in return, so she should not face charges.
