Sara Netanyahu grilled in fraud probe as PM faces threat from former aide

Israeli police questioned Prime Minister Benjamin Netanyahu’s wife, Sara, for two hours on Wednesday on suspicion that she diverted public money for her private housekeeping expenses.

The interrogation came as a new threat loomed over the premier in his own long-running battle with corruption suspicions, with his former chief of staff reportedly considered an offer to turn state’s witness.

Sara Netanyahu was interrogated at National Fraud Squad headquarters near Tel Aviv over allegations she used public money for personal housekeeping expenses at the couple’s official and private residences.

Like previous rounds of questioning of both the premier and his wife, police issued no statement on Sara Netanyahu’s questioning.

The questioning came as reports swirled around tribulations facing her husband after his former chief of staff, Ari Harow, reportedly agreed to give evidence against his former boss in exchange for immunity from prosecution for his own acts.

Harow has been under investigation for more than two years on suspicion of bribery, breach of trust, conflict of interest and fraud and has reportedly been giving investigators information on two of the ongoing investigations into alleged wrongdoing by Netanyahu.

One of the cases is based on suspicions that the premier unlawfully received gifts from wealthy supporters, including Australian billionaire James Packer and Hollywood producer Arnon Milchan.

Also being probed is a suspicion that Netanyahu sought a secret deal with the publisher of daily newspaper Yedioth Aharonoth.

The proposed deal, which is not believed to have been finalized, would have seen Netanyahu receive positive coverage in return for him helping scale down the operations and influence of the free daily Israel Hayom, Yedioth’s main competitor, which is owned by casino mogul Sheldon Adelson, a long-time Netanyahu backer.

According to a report Wednesday by Israel’s Channel 2 news, Harow is also giving information on a scandal surrounding Israel’s purchase of German submarines. Netanyahu is not a suspect in that case, but several top officials close to him are being investigated, including his personal attorney and cousin, David Shimron.

The report also said that Miki Ganor, who agreed to turn state witness after he was arrested for his central involvement in the affair, is to only face prosecution on tax offenses — but not bribery — and is expected to spend a year in prison as well as pay a NIS 10 million ($2.8 million) fine.

Investigators suspect that Ganor, a former agent for the German submarine company ThyssenKrupp, paid out bribes in connection with a decision to buy three submarines from the firm, despite opposition from the Defense Ministry.

The investigations have stirred Israeli politics and led to speculation over whether Netanyahu will eventually be forced to step down.

Justice Minister Ayelet Shaked told Hebrew news site Ynet on Wednesday that Netanyahu is not legally obliged to quit — even if testimony is given against him.

“At the moment there is no charge against him and there is no recommendation to charge him,” she said.

“The ones to take that decision are the attorney general and the state prosecutor,” she added.

“For now, let the prime minister get on with his job,” she said.