Australian billionaire questioned in PM gifts probe, after months of delay

Israeli investigators in cooperation with Australian authorities questioned Australian billionaire James Packer this week as part of a corruption probe of Prime Minister Benjamin Netanyahu, after months of unsuccessful attempts to set up a meeting, Hebrew media reported Wednesday.

According to a Hadashot TV report, Packer on Tuesday answered the questions of Australian investigators who had been briefed by Israeli police officials, as the Israelis listened in.

Though police had weighed questioning Packer as a suspect in the case, it was eventually decided that the testimony would not be given under caution, the report said.

Packer’s testimony was needed in connection with the criminal investigation known as Case 1000, involving suspicions that Netanyahu received illegal gifts and favors from businessmen in exchange for advancing their business interests.

The businessmen in question include Packer and Hollywood producer Arnon Milchan. Packer, chairman of Crown Limited, one of Australia’s largest entertainment and integrated resort groups, is seen as a key figure in the ongoing investigation.

Police are reportedly looking into whether Netanyahu tried to help Packer gain residency in Israel and aided Milchan in a US visa request. Packer, who also bought a home next to Netanyahu in the prosperous coastal city of Caesarea, is reportedly seeking residency status for tax purposes.

Last week Netanyahu was grilled by police for over four hours in connection with the probes into his affairs. Police did not provide any further details on the interrogation, his second this month and his sixth session since he was named a suspect late last year.

Netanyahu faces two separate criminal investigations, known as Case 1000 and Case 2000. He has denied wrongdoing in both cases.

Case 1000 revolves around alleged illicit gifts given to Netanyahu and his family by billionaire benefactors, most notably hundreds of thousands of shekels’ worth of cigars and champagne from Milchan.

Last week, Hadas Klein, Milchan’s personal assistant, told police that Sara Netanyahu would call her up regularly to ask for cigars and champagne, Hadashot news reported.

“There were code words for champagne and cigars,” she was quoted as saying by Hadashot. “It went on for years. There was an understanding that Arnon had to supply the Netanyahu couple with whatever they wanted. The cigars were requested by [Benjamin] Netanyahu.”

Channel 10 news reported that Milchan’s driver told investigators he was once forced to leave his home in the middle of the Passover Seder to deliver champagne at the request of Sara Netanyahu.

While leaked reports of the police investigation have indicated that Milchan spent some NIS 400,000-600,000 ($100,000-150,000) on champagne and cigars for the Netanyahus over the better part of a decade, the prime minister and his wife have reportedly told police that the sums involved were far lower, and that the gifts were unremarkable, since the Milchans were their best friends.

As for claims that Milchan kept Netanyahu supplied with expensive cigars on an ongoing basis for the better part of a decade — the lion’s share of the hundreds of thousands of shekels’ worth of allegedly illicit benefits — the Netanyahus reportedly told police he was merely a “social smoker” and that whenever his friend Milchan came to see him, he would bring just three to six cigars, worth about $10 each.

Netanyahu was interrogated under caution, and was reportedly confronted with Klein’s testimony, among others.

In an effort to shore up the suspicion of bribery, police were also said to have asked the prime minister about a number of “favors” he may have provided for Milchan in return.

Pressed over reports that he asked US secretary of state John Kerry three times in 2014 to arrange a long-term visa for Milchan, an Israeli citizen, to live in the US, Netanyahu has admitted to making a request, but claims it had nothing to do with the gifts he received.

In addition to the US visa, police are reportedly investigating whether Netanyahu intervened in the sale of Channel 10 shares to benefit Milchan financially, and whether the prime minister sought to help the Hollywood producer secure a major stake in Channel 2.

Milchan also allegedly asked Netanyahu to promote a free trade zone near the Jordan-Israel border. The request was said to have been made following consultation with Indian billionaire Ratan Tata, whose Tata business conglomerate may have stood to benefit from the deal. The initiative never went through.

Netanyahu is also a suspect in a second investigation, Case 2000, which is examining an alleged clandestine quid pro quo deal he made with Yedioth Ahronoth publisher and owner Arnon “Noni” Mozes, in which the prime minister was said to have promised Mozes he would hobble Yedioth’s main commercial rival, the freebie Israel Hayom, in exchange for friendlier coverage from Yedioth.