9 Aug 2019; MEMO: Three auditors have resigned from a crucial committee overseeing the corruption cases against Israeli Prime Minister Benjamin Netanyahu, after his recent pick for government watchdog chastised them for insisting the prime minister repay his own legal fees.
The three were members of the Permits Committee, part of Israel’s State Comptroller’s Office, which reviews the Israeli government’s policies and operations. Of late the State Comptroller’s Office has been overseeing three corruption cases against Netanyahu – dubbed Cases 1000, 2000 and 4000 – in which he faces charges of bribery, fraud and breach of trust.
Netanyahu has sought to cover his legal fees for these cases with the help of Nathan Milikowsky, a billionaire US steel magnate who is also the prime minister’s cousin.
Milikowsky has been named in a separate corruption case which could yet ensnare the prime minister – known as Case 3000 or the “Submarine Affair” – for allegedly selling Netanyahu shares in his steel company at subprime rates, enabling him to make huge profits despite the company’s poor performance. The steel company was also a crucial supplier of ThyssenKrupp, a German submarine firm at the heart of Case 3000.
In light of this information and the prime minister’s own personal wealth, in June the Permits Committee ordered Netanyahu to give back some $300,000 that Milikowsky had given him to cover his legal fees. Despite repeated demands by Netanyahu’s camp that he be allowed to receive financial help for his defence, the committee ruled that it was “inappropriate” for non-Israeli benefactors to pay the fees in a case in which the defendant is accused of receiving gifts from international patrons.
Now Matanyahu Engelman – Israel’s recently-instated State Comptroller whose candidacy was backed by Netanyahu – has chastised members of the Permits Committee for their insistence that the prime minister return the money to Milikowsky.
In a meeting which took place late last month between Engelman and committee members, Engelman allegedly lashed out over their demand that Netanyahu return the money to his cousin. The comptroller called this position an “overstep” of the committee’s authority, the Times of Israel reported today, citing an initial report by Israel’s Channel 13.
“Your job is to decide whether to permit or not, nothing more. Don’t run my office,” Engelman allegedly told the committee members. Three members have now resigned in protest against Engelman’s handling of the affair, meaning their replacements will be appointed by the state comptroller himself.
In addition, though the committee’s chair Shalom Brenner has not resigned, his term is due to end next month. His position will also be filled at the discretion of Engelman, raising concerns that he will fill the posts with individuals sympathetic to Netanyahu’s position.
The row will be seen as the latest evidence of how Engelman is attempting to reinterpret the role of state comptroller in a bid to shield Netanyahu from prosecution.
Engelman was Netanyahu’s candidate for the top job, which was previously held by career legal professional Joseph Shapira. For his part, Engelman is the first comptroller in 30 years who is not a former judge, prompting speculation that Netanyahu had an ulterior motive for backing his candidacy.
Engelman has wasted no time proving his value to Netanyahu. In the month since being instated, he has set about dismantling the Special Assignments Department of the State Comptroller’s Office, which has previously investigated former Israeli Prime Minister Ehud Olmert and Netanyahu’s wife Sara, convicting her in what became known as the “catered meal” scandal.
Last month sources inside the office told Haaretz that Engelman had asked senior officials to change how they prepare their annual workplans, which determine the issues that will be investigated in the coming year. Officials will now be required to give the government agencies they wish to monitor a say in the oversight process, effectively allowing them to navigate the investigations to committees more amenable to them.
It is therefore suspected that Netanyahu could use this new approach as part of his bid to avoid prosecution in his three corruption cases. Though he is slated to appear in court in October, whether he will be able to avoid attending the pre-indictment hearing remains to be seen.
