Israeli Coalition Considers Last-Minute Bill to Limit Fraud Charges in Netanyahu Case

In the final weeks before the Knesset dissolves, coalition members have explored introducing a last-minute bill that would prohibit the prosecution from filing charges related to fraud and breach of trust offenses, which the bill describes as vague and ambiguous. This legislation, initially proposed earlier this year by MKs Simcha Rothman (Religious Zionism), Ofir Katz (Likud), and Michel Buskila (New Hope), aims to restrict the scope of prosecutable offenses in public corruption cases.

If enacted, the bill would leave Prime Minister Benjamin Netanyahu facing charges solely on bribery allegations, as the fraud and breach of trust counts would be invalidated. The move follows recent remarks by judges in Netanyahu's trial, who stated that the prosecution failed to substantiate bribery charges even after hearing key defense testimonies, including Netanyahu's own. Despite this, the prosecution has declared it will not drop the bribery charge.

The bill's explanatory notes argue that fraud and breach of trust are overly broad offenses used to regulate public officials' conduct beyond clear criminal statutes, allowing retroactive criminalization based on discretionary judgment. It emphasizes that existing laws already cover corruption through well-defined offenses like bribery, money laundering, insider trading, fraud, forgery, and obstruction.

The proposal also includes plans for parallel reforms to strengthen disciplinary law and expand ethical oversight tools. However, the likelihood of passing this bill before the Knesset's dissolution is slim, as it has not even passed a preliminary reading and was previously frozen at Netanyahu's request.

This legislative effort reflects ongoing tensions surrounding Netanyahu's legal battles and the coalition's attempts to influence the judicial process amid political uncertainty.