Netanyahu’s alleged crimes relate to decisions he made during his tenure as Minister of Communications. Netanyahu held that portfolio in addition to serving as Prime Minister and Foreign Minister from 2015 through 2017. His allegedly corrupt actions involve the Communications Ministry’s decision to approve the merger of Bezeq – Israel’s telecommunications giant and former monopoly — with YES, Israel’s satellite television provider.
Netanyahu is accused of approving the merger that allegedly gave a billion shekels – or some $300 million – in regulatory and tax breaks to Yes, enriching Bezeq owner Shaul Elovich. Elovich and his wife Iris are friends with Netanyahu and his wife Sara.
Elovich allegedly repaid – that is, bribed – Netanyahu for his allegedly preferential treatment by providing the prime minister and his wife Sara with positive coverage on Israel’s Walla Internet news portal, which is owned by Bezeq.
Neither the “quid” – that is, preferential regulatory and tax treatment – nor the “quo” – positive coverage on a website – stand up to scrutiny.
On the regulatory side, there are several problems with the claims against Netanyahu. First, as the Hebrew-language investigative journalism magazine Mida
reported, he wasn’t involved with the Bezeq-Yes merger. It was handled by his then-director general Shlomo Filber. Filber, who signed a deal to serve as a state’s witness against Netanyahu in March, claims now that he was acting as Netanyahu’s errand boy in approving the merger.
Even if Filber’s claim is true, the fact is that there is nothing wrong with the merger from a legal or financial perspective. The deal was approved by all the relevant legal and regulatory authorities at the time. And one of the odd aspects of the criminal probe against Netanyahu is that the regulators who approved the deal were never called in for questioning by police investigators.
The second aspect of the “quid” part of the allegations against the Netanyahus is that that the tax and regulatory breaks that Yes received were standard breaks. As financial reporter Eli Zippori, from Israel’s Globes Hebrew-language business newspaper,
noted, Yes received tax rebates because it was losing millions of shekels. Similar tax breaks were granted to Yes’s chief competitor, HOT cable television provider. And no one ever batted a lash.
The regulators’ decision to permit Bezeq and YES to merge was controversial. But it was also reasonable. It improved the lot of consumers. Zippori explained that the merger enabled the two firms to provide the public with discounted service bundles that included landlines, Internet service, and television service.
(full article online)
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