A longtime associate of Prime Minister Benjamin Netanyahu agreed to turn state's witness in a new corruption investigation involving the PM, the Israel Police announced Wednesday.
Former Communications Ministry Director General Shlomo Filber is one of the prime suspects in Case 4,000, which centers on potentially illicit dealings and conflict of interest involving Israeli telecom corporation Bezeq and the Walla news website, which Bezeq owns.
Filber has been arrested along with Bezeq controlling shareholder Shaul Elovitch, Elovitch's wife Iris, son Or and other top Bezeq executives, on suspicion that Elovitch ensured positive coverage by Walla for Netanyahu, in exchange for the prime minister promoting government regulation worth hundreds of millions of dollars to the company.
Sources close to the investigation said Filber's deal to turn state's witness was "a dramatic development" in the case, as his testimony may incriminate Netanyahu.
On Monday, following news of Elovitch's and Filber's arrests, the Israel Police confirmed that "in the course of the investigation, suspicions were raised as to alleged fraud, violations of the Prohibition of Money Laundering Law and the Securities Law, and various integrity offenses, which were carried out systematically and over time in the framework of the relationships between Bezeq Group officers, public officials and their associates.
"The evidence suggests that some of the suspects blatantly attempted to disrupt the investigation and hinder the gathering of evidence in the case."
The police also confirmed that "a number of other witnesses, including former and present public servants, media figures and private and business sector officials were questioned by the Major Crimes Unit and the Israel Securities Authority."
According to Hadashot evening news, the police offered Filber a deal after the investigation found that he did not stand to gain personally from any of the crimes of which he is suspected.
Sources privy to the case said Filber agreed to turn state's witness only after investigators presented him with "golden evidence" that made him agree to turn against Netanyahu.
As part of his deal, Filber is not expected to serve any jail time.
According to police officials, once Filber's testimony is on record, investigators are likely to seek permission to question Netanyahu in the case.
Netanyahu posted a video statement on his Facebook page on Tuesday in which he firmly denied any wrongdoing.
"What has happened over the past two days is simply madness. It's a scandal. They [the police] have brought two delusional, false allegations as part of a campaign of persecution against me and my family that has been going on for years," he wrote.
"All the decisions regarding Bezeq were made by professional committees, by professionals and under close legal supervision. Everything is transparent. The claim that I acted in favor of Bezeq at the expense of practical considerations is simply baseless.
"There is no ignoring this orchestrated campaign. The police are fabricating new cases every two hours and we know to what end: to forcibly create a cloud over the prime minister's head. It's unbelievable."
Netanyahu addressed the public, saying, "I want you to know that I trust you, I have every faith in the justice system, and you can trust me."
