What James Packer has to do with the case against Benjamin Netanyahu

Israeli Prime Minister Benjamin Netanyahu is facing bribery and fraud charges linked to gifts he received from Australian billionaire James Packer and Hollywood mogul Arnon Milchan.

The specific charges of fraud and breach of trust are dubbed Case 1000, an investigation first flagged almost two years ago and one of several covered in the indictment.

James Packer with Israeli Prime Minister Benjamin Netanyahu (left) and (circled, next to him) son Yair Netanyahu.Credit: Channel 10

A spokesperson Packer, the former Crown Resorts chairman, told The Sydney Morning Herald The Age on Friday that "Packer had been interviewed as a witness in the case and is not accused of any wrongdoing."

Case 1000 alleges Netanyahu received "a supply line of gifts" from Packer and Milchan in exchange for favours over the course of 10 years.

The charges for Netanyahu come as he and rival Benny Gantz have both failed to form governing majorities in Israel's fractured parliament, despite a second election having been held this year to break the deadlock. It now looks likely the country will once again head to the polls.

Prosecutors allege Milchan, an expatriate Israeli, along with Packer, sent the equivalent of $300,000 worth of gifts to the Prime Minister's residence in Jerusalem. In return, it is alleged Netanyahu had promoted tax legislation that could benefit Milchan.

Benjamin Netanyahu (left) allegedly received gifts from, among others, Australian billionaire James Packer (right) in return for favours.Credit: AP

The gifts from Packer to Netanyahu included champagne, tickets to a Mariah Carey concert (whom Packer was dating at the time) cigars and accommodation for Netanyahu’s son, Yair, at Packer-owned luxury properties.

"In view of the numerous links between the Netanyahu and Milchan, Netanyahu should refrain from engaging in Milchan's affairs as part of his duties," the indictment said.

Netanyahu doesn't deny receiving gifts but says he didn't grant favours in return. He has rejected the charges.

Billionaire James Packer.Credit: Bloomberg

Packer was interviewed on a "voluntary basis" as a witness in 2017 by Australian Federal Police conducting the interview for their Israeli counterparts, the Sydney Morning Herald and The Age reported in 2018.

At the time, Packer's spokesman said: "There is no allegation of wrongdoing on Mr Packer’s behalf ... The Israeli and Australian police have confirmed that he was interviewed as a witness, not a suspect."

Netanyahu has described Packer as a “neighbour and friend” and “now and again, I asked him to bring me something to Israel from abroad”.

In 2017, Packer said: “I admire Prime Minister Netanyahu and am happy that I was given the opportunity to be his friend. I was happy to give him presents, many times at his request and his wife Sara’s request”.

Packer first met Netanyahu at a dinner hosted by Milchan in 2014.

Prosecutors allege that between October 2011 and December 2016, Netanyahu tried to help Milchan's business interests in a number of ways: lobbying US officials to get Milchan a visa, and lobbying Israel's finance minister for tax breaks. Netanyahu also sought to help facilitate a merger that would have aided Milchan.

"With these actions the defendant Netanyahu carried out acts of breach of trust that gravely hurt public trust and clean conduct," the indictment said.

The charges against the Israeli leader also claim that between 2012 and 2017, Netanyahu had a "quid pro quo" arrangement with a tycoon who owned a popular news website, Walla, in which Netanyahu wanted favourable coverage.

The businessman, Shaul Elovitch, is a majority shareholder in Israel's largest telecommunications company, Bezeq, which owns Walla. Netanyahu is accused of using his political power to shape and ease regulations in favour of Bezeq in return for positive Walla coverage of him and his wife, Sara.

He's also accused of agreeing with Arnon Mozes, the owner of Israel's best-selling daily newspaper, Yedioth Ahronoth, to push to limit the circulation of a rival newspaper in exchange for more positive coverage.

The indictment claims that in 2014, in the lead-up to an election, Mozes offered Netanyahu a bribe: His paper would be kinder if the prime minister would help to advance legislation to limit Israel Today's circulation (which, as a free newspaper, was upending Israel's media market).

with The Washington Post, Bloomberg