Israeli attorney general won't prosecute Netanyahu

Former Israeli Prime Minister Benjamin Netanyahu

Way cleared for hard-line challenge to Barak's government

In this story: Evidence 'insufficient' Not 'pure as snow' RELATED STORIES, SITES

From staff and wire reports

JERUSALEM -- Israel's attorney general announced Wednesday he will not try former Prime Minister Benjamin Netanyahu on corruption charges, clearing the way for the popular hard-liner to challenge Prime Minister Ehud Barak.

Netanyahu, reached in Atlanta, declined to comment until he has had the chance to read the report when he returns to Israel on Thursday. But his lawyers said they were "happy and pleased" by the decision and the attorney general's determination that there was no criminal intent by Netanyahu or his wife, Sara.

In the 22-page report, Attorney General Elyakim Rubinstein said that "difficulties with the evidence" made it unlikely that a conviction could be obtained against the couple. Police suspected they had conspired with a government contractor in a kickback scheme, illegally keeping gifts, and obstructing justice.

Evidence 'insufficient'

"I have decided to close the file against Mr. Netanyahu concerning the suspicions attributed to him because of evidence insufficient for a criminal trial," said Rubinstein.

The announcement comes at a sensitive time for Barak, who soundly defeated Netanyahu in May 1999 elections. Barak's far-reaching peace proposals, however, have lost him majority support in Parliament, and Netanyahu's hard-line Likud party hopes to force him out once Parliament reconvenes on October 30.

Recent polls indicate Barak would handily defeat Netanyahu's successor, Ariel Sharon, but the same polls show Barak and Netanyahu in a dead heat.

Sharon evaded questions on how the decision to close the case against Netanyahu would affect his own political future.

"The Likud party is a democratic organization. There will be elections, whoever wants to will run. I know I certainly will," Sharon told reporters. "This year we will oust Barak's government from power."

Barak released a statement commending the police and the prosecutors for their work on the case.

Netanyahu is slated to arrive in Israel on Thursday from the United States, and aides have strongly hinted that he will announce his return to the political fray before the Jewish New Year, which starts Friday afternoon.

Rubinstein's report hardly let Netanyahu off the hook. He said the Netanyahus' relationship with a contractor who allegedly carried out more than $100,000 worth of free services for them was improper.

Not 'pure as snow'

"The considerations were difficult. There was a consensus by everyone who dealt with this that this was not a proper way to run government," Rubinstein said. "The image of the public service in the eyes of the public ... is a vital condition for the existence of proper government."

Noting this was the second investigation in which the police had recommended indicting Netanyahu, Justice Minister Yossi Beilin called the situation "very ugly."

"The impression you get from reading the report is, 'Don't think that because the man has not been indicted that he is pure as snow," Beilin told Israel television.

The news of a possible Netanyahu comeback came as Israeli and Palestinian negotiations intensify in a bid to work out a final peace agreement while Barak is still in office.

Not everyone in the Likud was heartened by the prospect of Netanyahu's return. Israel radio reported that Sharon was considering helping Barak delay elections by joining the coalition in a national unity government.

Likud lawmaker Reuven Rivlin, who is close to Sharon, called on Netanyahu to make a quick announcement and "stop the flurry of whispers and to stop the waiting that could cause a pain in the neck to the chairman of the Likud."

In April 1997, Netanyahu was also cleared of charges in an influence-peddling scandal over the appointment of a new attorney general.

Netanyahu has been residing in the United States, working as an adviser to startup companies and keeping largely out of the public eye.

The Associated Press and Reuters contributed to this report.

Netanyahu calls accusations against him 'worthless'
March 28, 2000
Netanyahu says he'll be cleared in fraud investigation
September 16, 1999
Netanyahu leaves politics -- for now
May 27, 1999

Likud (Hebrew)
Israeli Ministry of Justice (Hebrew)
Office of the Israeli Prime Minister (Hebrew)
Israeli Government

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