Police investigators arrived at the Prime Minister's Residence in Jerusalem on Friday to question Prime Minister Benjamin Netanyahu under caution on suspicion that he bribed a telecom chief in exchange for positive media coverage.
At the same time, Netanyahu's wife Sara was escorted to police's Lahav 433 Major Crimes Unit headquarters in Lod to provide testimony in the case, but when she arrived, she was informed that the session was an interrogation under caution as well, not just a collection of testimony, implying that she, too, was a person of interest in the case.
In addition, an unnamed third suspect, reported to be a close associate of the prime minister's and a former official in the Communications Ministry, was also questioned under caution.
Netanyahu was grilled for five hours over Case 4,000, a corruption investigation revolving around allegations Netanyahu helped ease government regulations on Israeli telecommunications giant Bezeq in exchange for positive coverage in Walla, Bezeq's news site subsidiary, in an illicit deal worth a billion shekels ($300 million) with controlling shareholder Shaul Elovich.
Police arrived at the Prime Minister's Office on Friday morning to question him on suspicion of fraud and breach of trust. During the session, Netanyahu was likely also asked to provide his version of events regarding the controversial purchase of German submarines in Case 3,000. This separate corruption investigation, in which Netanyahu has not been named a suspect, is an ongoing criminal investigation into two of Netanyahu's closest associates, attorneys Isaac Molho and David Shimron.
Molho and Shimron are suspected of potential conflicts of interest in Israel's 2015 procurement of submarines and other vessels from German conglomerate ThyssenKrupp.
Responding to allegations he offered a billion-shekel bribe, Netanyahu remarked before the interrogation that "after they claimed that the prime minister smoked a million shekels worth of cigars, now there's a new theory: kickbacks worth a billion shekels. But the problem is that every action that was taken was under the guidance of professional recommendations, professional committees and legal consultation."
"There was no million, no billion and no trillion. There was nothing," Netanyahu declared.
Regarding Sara Netanyahu's testimony, Channel 10 news reported Thursday that investigators possess correspondences between her and Elovich's wife, Iris, mentioning the alleged kickbacks provided to Bezeq. According to Netanyahu, the report said, Sara's messages do not incriminate him.
The police also have a recorded conversation between Elovich to Bezeq CEO Ilan Yeshua, Channel 10 reported, in which Elovich is heard saying, "We must make an effort for Netanyahu – he makes an effort for us."
In response, Netanyahu issued a statement saying that "There was never anything. The ongoing tendentious and false leaks against Mrs. Netanyahu are meant to harm the prime minister and the Likud government. And they continue to claim there are no leaks, right?"
Meanwhile, a senior police official told Israel Hayom on Thursday that the police do not have recordings of conversations between Netanyahu and any of the suspects in Case 4,000.
Friday was the first time that Netanyahu, who as prime minister also held the communications portfolio until last year, was questioned over Case 4,000.
The development comes ahead of Netanyahu's visit to Washington where he is to meet with U.S. President Donald Trump and address the pro-Israel lobby AIPAC next week.
Police have recommended indicting Netanyahu on corruption charges in two other cases.
In the other cases, Netanyahu is accused of accepting nearly $300,000 in lavish gifts from Hollywood mogul Arnon Milchan and Australian billionaire James Packer. In return, police say Netanyahu operated on Milchan's behalf on U.S. visa matters, legislated a tax break and connected him with an Indian businessman.
In the other case, Netanyahu is accused of offering a newspaper publisher legislation that would weaken his paper's main rival in return for more favorable coverage. Netanyahu reportedly was recorded asking Arnon Mozes, the publisher of Yedioth Ahronoth, for positive coverage in exchange for helping to weaken Israel Hayom, Yedioth's chief competitor.
Netanyahu has repeatedly denied any wrongdoing and has dismissed the accusations as a witch hunt orchestrated by a hostile media.