POLICE FORMALLY RECOMMEND INDICTMENT OF FOREIGN

UNCLAS TEL AVIV 001718

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV IS
SUBJECT: POLICE FORMALLY RECOMMEND INDICTMENT OF FOREIGN
MINISTER LIBERMAN

REF: A. TEL AVIV 01579

B. TEL AVIV 01437

C. TEL AVIV 01337


1. (SBU) Israeli police on August 2 recommended to Attorney
General Menachem Mazuz that he indict Foreign Minister
Avidgor Liberman on charges of bribery, money laundering,
obstruction of justice, fraud, and breach of trust. The
recommendation followed an eight-year investigation into
Liberman's business activities. Mazuz is expected to make a
decision in approximately two months on whether to indict the
Yisrael Beitenu leader. Liberman's immediate reaction was to
accuse the police of persecuting him, and he suggested there
were political motivations behind the investigation. On
August 3, however, Liberman told a meeting of his faction
that his conscience was clear and that he did not expect an
indictment, but that if indicted he would immediately resign
from his ministry, and within three to five months he would
also resign from the Knesset and from his position as party
chairman.


2. (SBU) The Israeli press covered the developments closely
this weekend, but there was no media frenzy, as the police
recommendation was widely expected. Pundits are speculating
as to who would take over for Liberman should he resign, but
it is largely a guessing game. Liberman's influence over the
party is so pervasive that his colleagues are reluctant to
speak of a "day after." The assessments we provided in ref
cables are still valid, and we will update as events warrant.

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