Attorney General Avichai Mendelblit on Tuesday decided to indict former MK Hanin Zoabi of the Arab Balad party on fraud charges.

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Zoabi was questioned along with 35 other suspects, including then-senior Balad officials, for alleged financial irregularities in the party. Zoabi is accused of forging documents that were submitted to the State Comptroller between 2013 and 2016. She is suspected of systematically deceiving the ombudsman by misrepresenting the source of millions of shekels the party had received.

"After considering the substance of the claims at the hearing and the legal opinion presented to me, I reached the general conclusion that there is an evidentiary basis and public interest to put Ms. Zoabi on trial," Mendelblit said in a statement.

Mendelblit also decided not to indict other senior Balad officials, despite noting that the evidence indicated they were guilty and that there were legal grounds to file criminal charges against a political party.

"The possible harm of putting a party on trial is expected to not only harm its current leadership or founders or owners, but also a wider circle of citizens who have an attachment to the party and identify with its goals and public positions," the attorney general explained.

The legal team representing Balad cheered the decision not to charge the party.

"Our position in regards to the Balad party was heard within the framework of two hearings and was accepted in full by the attorney general. The decision not to file a precedential indictment against a party is an important milestone and prevents a historic legal distortion," the lawyers said in a statement.

‏‎As for Zoabi, the attorneys said they were holding hearings and negotiations with prosecutors.

Zoabi's openly hostile stance against the State of Israel had angered many over the years.

She has sparked outrage in the past with comments in support of Hamas, labeling IDF soldiers as "murderers" and other similar rhetoric.

She participated in the 2010 naval convoy that attempted to break Israel's security blockade on the Hamas-run Gaza Strip. Ten activists were killed in violence aboard the Mavi Marmara ship when they attacked Israeli naval commandos who boarded the vessel.

In April 2018, Zoabi called for the State of Israel to be dissolved and replaced with either two states – one secular and one Palestinian, or one binational secular state.

Balad, which advocates for a binational state for Palestinians and Israelis, has been dogged by controversy. Party founder Azmi Bishara fled Israel in 2007 after being accused of passing secrets to the Hezbollah terror group.

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The purpose of the request, Odeh said, was to ensure that Prime Minister Benjamin Netanyahu was given the first chance to form a government.

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In fact, after the Joint Arab List originally voted to recommend Gantz, Balad pulled its support overnight on Sunday.

"I must clarify a very important point," Odeh said in the 40-minute video.

"Listen, my brothers and sisters – the thing is that Gantz and Blue and White prefer that Netanyahu be given the first mandate [to form a government]. And I am here to reveal what has been kept secret for a few days."

"Blue and White approached me. MK Ofer Shelah came to me and said, 10 [recommendations] is enough. He said, 'don't give us 13.' Why 10, and not 13? So that a total of 54 MKs would recommend Gantz compared to 55 for Netanyahu, thereby giving Netanyahu the first go."

"Why? So that Netanyahu will fail to form a government, and the mandate will then be given to Blue and White. The parties won't want to hold a third election, the public won't want an election and will start to get impatient. At that point, Gantz will be able to form a government," Odeh said.

Odeh also said in the video that an agreement was in place that Blue and White would work to cancel a law that institutes harsher punishments for unpermitted construction.

An associate of Gantz told Israel Hayom, "It's nothing new that Shelah makes moves to take care of Yair Lapid and Yesh Atid. Of course, we're uncomfortable this morning – there are no underhand maneuvers in Blue and White, and it's too bad this incident makes it look like there are."

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