Witness in graft trial says Netanyahu asked for NIS 3,000 ‘tip’ to spend in Tiberias

Hadas Klein says money from boss Arnon Milchan’s petty cash went to satisfy demand by the premier; another NIS 15,000 was spent on gift for his wife, Sara

Hadas Klein arrives to a court hearing in the trial against former prime minister Benjamin Netanyahu, at the District Court in Jerusalem on September 12, 2022. (Yonatan Sindel/Flash90)
Hadas Klein arrives to a court hearing in the trial against former prime minister Benjamin Netanyahu, at the District Court in Jerusalem on September 12, 2022. (Yonatan Sindel/Flash90)

A key witness in the corruption trial of opposition leader Benjamin Netanyahu testified Monday that the former premier once requested NIS 3,000 in petty cash “as a tip” for use during a visit to Tiberias and that on another occasion NIS 15,000 in cash was spent on his wife, Sara.

Hadas Klein, a personal assistant of Hollywood producer Arnon Milchan and an aide to Australian billionaire James Packer, was questioned by Netanyahu’s defense attorney Amit Hadad about expenses her bosses covered.

The allegations in so-called Case 1000 revolve around luxury gifts the former prime minister and his family received and quid pro quos Netanyahu is accused of having provided in return. Klein had previously described to the court how she was the conduit for a steady supply of premium cigars and champagne to the Netanyahus, goods she said were not volunteered by Milchan or Packer but rather were requested directly by the ex-premier and his wife.

Her testimony is highly significant as it undermines Netanyahu’s defense that he was merely accepting gifts from friends and that he was not aware of the extent of the gifts.

During his cross-examination of Klein at the Jerusalem District Court Monday, Hadad tried to show that others had also enjoyed the largess of both Milchan and Packer and that luxury items such as cigars and champagne were commonplace for guests in their private homes.

He presented photographs of a birthday party thrown for Shimon Peres at one of Milchan’s homes, in which the former president was with Packer at a table bearing pink champagne, and another occasion when the two were seated together, also with champagne on the table. Hadad also presented letters in which two other people in Packer’s circle described smoking cigars every day while the businessman was on a visit to Israel.

Pressed to speak about some of Milchan’s private expenses, Klein refused to go into detail, and the judge backed her up, warning Hadad that the court was only interested in items related to the Netanyahus.

Hadad pressured Klein further about cash set aside for Milchan’s personal expenses and she retorted by mentioning money spent on the Netanyahus.

“There are personal matters of Arnon’s you don’t want to hear about,” Klein told the court, “like what I bought with NIS 15,000 ($4,440) in cash for Mrs. [Sara] Netanyahu, or that Mr. Netanyahu asked for a tip of NIS 3,000 ($890) from [Milchan’s] petty cash for [use during] a trip in Tiberias.

Opposition leader Benjamin Netanyahu’s attorney Amit Hadad arrives at the District Court in Jerusalem for a court hearing in the case against his client, the former prime minister, September 12, 2022. (Yonatan Sindel/Flash90)

Hadad also quizzed Klein about some earrings she had said were bought for Sara Netanyahu but that receipts showed, he said, were purchased for Milchan’s wife, Amanda.

“I would never write on the receipt that they are for Sara Netanyahu,” Klein explained. While she allowed that one pair of earrings may have gone to Amanda Milchan, she stressed that another pair was delivered to Netanyahu and that “we made sure they reached her on time.”

Netanyahu was not in court Monday for the proceedings.

Opposition leader Benjamin Netanyahu speaks to reporters outside the Prime Minister’s Office in Jerusalem, on August 29, 2022. (Olivier Fitoussi/Flash90)

State prosecution representatives are set to travel in the coming weeks to either London or Los Angeles where they will interview Milchan, Channel 13 reported. Milchan may also testify in the trial via video link, according to the report.

The indictment in Case 1000 against the former prime minister charges that Netanyahu violated conflict of interest laws when he provided Milchan with assistance in renewing his long-term US residency visa. It alleges that this — alongside Milchan’s supply of an estimated NIS 700,000 ($205,000) worth of cigars, champagne, jewelry and other luxury items to Netanyahu and his wife — constituted fraud and breach of trust.

Hadad has previously in the trial sought to paint a picture of Milchan as someone who acted on the international stage to advance Israel’s interests and who was therefore entitled to assistance from the prime minister in renewing his American visa.

Arnon Milchan (left) and Benjamin Netanyahu at a press conference in the Knesset, on March 28, 2005. (Flash90/ File)

During her testimony in July, Klein acknowledged that Milchan had no “economic interests” in his relationship with Netanyahu, but commented that “from the perspective of the power it gave him, he could say, ‘I am a friend of the prime minister.’”

Klein added that Milchan felt he could call Netanyahu at any time, even during important meetings, and immediately turned to him when he required help with his visa.

Along with Case 1000, Netanyahu faces fraud and breach of trust charges in two other cases, as well as bribery in one of them. He has denied wrongdoing and claims without evidence that the charges were fabricated and part of a bid by the state prosecution and political rivals to end his career.

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