The Israel Police recommended Tuesday filing criminal charges against three Arab Knesset members who are suspected of fraud, forgery, money laundering and breach of trust.
The investigation against Balad MKs Hanin Zoabi, Jamal Zahalka and Juma Azbarga, whose party, together with the Ra'am-Ta'al and Hadash parties makes up the Joint Arab List faction, has been in the works since 2016 and was concluded earlier this week.
The three, alongside other Balad officials, are suspected of falsifying the party's financial records during the 2013 and 2015 general election campaigns.
The investigation has also revealed that during the period of time in question, Balad allegedly received campaign donations from enemy states, a police source familiar with the case said.
The Major Crimes Unit launched a covert investigation into Balad's operations following a 2016 state comptroller's report on campaign financing violations.
Investigators have reportedly been able to substantiate their suspicions that Zoabi, Zahalka, Azbarga and several Balad officials, assisted by lawyers and accountants, systematically misrepresented the source of the millions of shekels used to finance the party's activities, thus deceiving authorities and the State Comptroller's Office.
The police have turned over their evidence to the State Attorney's Office, where the final decision on whether to indict the lawmakers will be made.
A statement by Balad denied any wrongdoing by its members.
"This is political persecution and we deny these accusations. This is a dangerous escalation in the political persecution against the Arab public's leadership and it reflects the raging incitement against the Arab parties by [Israeli] politicians," the statement read.
"Balad adamantly rejects the allegations made against its members. The police are trying to turn financial and administrative irregularities into a criminal matter in order to balance out the recommendations against [Prime Minister Benjamin] Netanyahu. We stress that no one in Balad has been suspected or questioned about receiving illicit favors or money. Balad is certain that at the end of the day, the allegations will prove false."
