Full Breakdown
New Allegations Surface Over Payments to Netanyahu’s Defense Firm Amid Ongoing Corruption Trial
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Core Developments in the Corruption Trial
Prime Minister Benjamin Netanyahu has been on trial in the Jerusalem District Court since May 2020 on three separate corruption cases. Case 1000 concerns alleged gifts from Australian billionaire James Packer and Hollywood producer Arnon Milchan, while Case 2000 involves alleged media-coverage deals with publisher Arnon Mozes.
During a hearing on October 26 2026, former attorney-general Avichai Mandelblit testified for the defense. He was questioned by Judge Moshe Bar-Am about the scope of the investigators’ authority. Mandelblit confirmed that he had authorized the overall examination of whether Netanyahu received substantial benefits from businessmen, but said investigators did not need his sign-off for every individual interview. He also recounted ordering police to stop a wiretap of Netanyahu confidant Natan Eshel after learning the operation had proceeded without his prior approval.
Background on Case 1000 and Gift Allegations
Prosecutors allege that between 2014 and 2016 Netanyahu and his wife Sara received cigars, champagne and jewelry worth approximately NIS 690,000 (about $195,000). The indictment specifies gifts from Packer totaling NIS 229,174 (cigars NIS 145,577; champagne NIS 83,597) and similar benefits from Milchan. A key prosecution witness, Hadas Klein, testified about the delivery of these items.
New Payment Allegations
A report by The Sydney Morning Herald alleges that James Packer’s company Consolidated Press International transferred US $50,000 each month to the Israeli law firm Hadad Roth Shenhar from September 23 2024 onward, amounting to at least US $1.25 million (A$1.8 million) over two years. The payments were made through a Citibank account and deposited into the firm’s account at Bank Mizrahi Tefahot.
Packer declined to comment on the payments, and the law firm’s lead defense attorney Amit Hadad refused to address the matter.
Data & Statistics
- Gift value in Case 1000: NIS 690,000 (~$195,000).
- Packer-to-law-firm transfers: US $50,000 per month, total >= US $1.25 million, beginning September 23 2024.
- Investigative scope: Mandelblit authorized a broad examination of “substantial benefits” but said investigators need not seek approval for every interview.
Official Statements & Responses
Clancy Moore, chief executive of Transparency International Australia, reiterated that Israeli authorities have repeatedly ruled Netanyahu cannot use foreign funds to pay for his legal defence because of conflict-of-interest rules and disclosure requirements.
Netanyahu’s spokesperson declined to comment, stating the prime minister is “very busy” with the upcoming election.
Criticism & Opposition
Legal analysts and anti-corruption groups argue that the undisclosed payments, if linked to the prime minister, could constitute a breach of Israel’s anti-bribery statutes and foreign-funding prohibitions. Transparency International’s Australian director emphasized the need for “urgent and independent scrutiny” of the payments.
Verbatim Quotes
- “These new allegations must be thoroughly investigated by authorities,” — Clancy Moore, its chief executive
- “As there are already significant corruption charges against Mr Netanyahu relating to past gifts from Mr Packer, and other business associates, these new allegations must be thoroughly investigated by authorities,” — Transparency International’s Australian
- “Significantly, Israeli authorities have repeatedly ruled that Mr Netanyahu can’t use funds from foreign benefactors to fund his legal defence against corruption charges due to conflict of interests and his failure to disclose his wealth,” — Clancy Moore, its chief executive