Confidant said to back out of signing state witness deal against Likud minister

An associate of embattled Social Equality Minister May Golan reportedly backed out after being close to turning state witness in a major fraud investigation that has engulfed her office.

The Israel Hayom daily and Channel 13 news reported that Golan’s former parliamentary adviser, attorney Ehud Gabay — who was among six people arrested in a raid of Golan’s office on Monday — was close to signing a deal with prosecutors that would see him testify against the minister as part of a plea deal.

Channel 12 news and the Ynet news outlet said that state witness deals with two people were on the table, without naming the individuals.

Hours later, however, the Kan public broadcaster said that Gabay had since had second thoughts and did not sign the agreement, without elaborating on his reasoning.

Golan is suspected of fraud, misusing public funds for private purposes, creating fictitious positions in the Social Equality Ministry, and concealing sources of funding.

She was accused of enabling widespread nepotism and of dubious fundraising activities in a TV report that first aired in January, and police were granted the go-ahead a month later to open an investigation into the minister.

According to an Israel Police statement on Monday, Golan is accused of using  nonprofit organizations and government systems as a “tool for illegally extracting funds.”

Golan on Monday ignored a police summons for questioning and instead showed up for a court hearing for Gabay, saying that she would only submit to an interrogation if he was released.

The Rishon Lezion Magistrate’s Court ordered Gabay released to house arrest but police appealed the decision, and he will remain in custody through at least Thursday.

During the hearing on Monday, a police representative asserted that Gabay was a “central conduit” for the alleged illegal activity in Golan’s office and that he had acted in a variety of ways to fraudulently gather funds.

According to the Haaretz daily, Gabay’s wife, Inbal, was also arrested in the police raid and is accused of receiving a salary from Golan’s office despite not working there and instead running a dog-grooming business.

Golan’s mother has also reportedly been summoned for police questioning in the probe and has so far refused to show up.

At the courthouse on Monday, Golan accused police of “threatening innocent people just because they worked and [currently] work for May Golan the ‘Bibist,’” referring to her support for Prime Minister Benjamin Netanyahu.

Golan told the press that she would “show up to any questioning” once her associates were released. To a group of reporters gathered there, she insisted that she had “nothing to fear and nothing to hide.”

During a press conference on Tuesday evening, Netanyahu — asked about the investigation — said “I don’t know the case, and I can’t speak about it. Just because someone is accused of something doesn’t mean anything.”

The prime minister, who is currently on trial on three counts of corruption, added that “they can accuse you of all sorts of nonsense that has no truth to it.”