In one of the more dramatic moments in the years-long corruption trial of Benjamin Netanyahu, Arnon Milchan, a Hollywood movie mogul, billionaire spy and old friend Prime Minister of Israel, took the stand on Sunday to testify as the prosecution’s key witness in an alleged favor affair known as Case 1000.
In the first hours of his testimony, Mr Milchan described his relationship with Mr Netanyahu as “close friends, almost brothers” and confirmed that he had given Mr Netanyahu and his wife Sara cigars and champagne as gifts. Much of the case hinges on whether such gifts were given out of friendship or in return for a favor, and that will most likely be the focus of questioning during Mr Milchan’s testimony and cross-examination, which is expected to last around ten days.
Mr Netanyahu standing in court three separate but interlocking corruption cases, has been charged with fraud and breach of trust in Mr Milchan’s case. Mr Netanyahu has denied any wrongdoing. If convicted, he could face a prison sentence.
Mr. Milchan, 78, who wrote blockbusters like “Pretty Woman”, “Mr. & Mrs. Smith” and “Bohemian Rhapsody” also worked for the Israeli secret service as a weapons procurer for years. His colorful life and relationship with Mr. Netanyahu helped turn the Case 1000 process into a showcase for the connection of money, power and influence in Israel.
A star role.
According to prosecutors, from 2011 to 2016, Mr. Milchan showered Mr. and Mrs. Netanyahu with hundreds of thousands of dollars worth of gifts, mostly in the form of cases of expensive cigars and pink champagne, which were delivered case-by-case to the Prime Minister’s official residence in Jerusalem and to his private home in the coastal city of Caesarea.
Mr Netanyahu, who was then as now prime minister, is accused of intervening with American officials to help Mr Milchan renew his 10-year visa to the United States and of pushing for the extension of a tax exemption law and for a telecoms merger that prosecutors say would have benefited Mr Milchan in both cases.
Mr Netanyahu has argued that there is nothing illegal about receiving gifts from an old friend.
According to reports from the Jerusalem courtroom, in his testimony on Sunday, Mr Milchan described his close relationship with Mr Netanyahu and how they would discuss history and economics together. Mr. Milchan said he has supported Israel on security issues from the 1960s to the present day, adding: “I cannot elaborate on how many things Netanyahu and I have secretly done for the country.”
The shipments of cigars and champagne, which earlier testimonies had come to light, by Mr. Milchan’s personal assistant in Israel, Hadas Klein, constituted what prosecutors described as “a type of delivery channel”. On occasion, Ms Netanyahu also received jewelry, the court heard.
Mr Milchan said on Sunday that gift-giving started on his own initiative but later became routine and was at times in response to requests. He said that he and the Netanyahus codenamed the gifts, referring to cigars as “leaves” and champagne as “pink.”
At one point in the Case 1000 investigation, Mr. Milchan was suspected by the Israeli police of bribery, but the Israeli Attorney General found no reason to charge him with a crime.
Mr Milchan’s testimony is considered crucial to the case as he could potentially enlighten judges about the nature of his relationship with Mr Netanyahu and whether there is a clear link between the gifts and Mr Netanyahu’s actions on Mr Milchan’s behalf .
Mr. Milchan is testifying from Brighton, England, via a video conference link to the Jerusalem District Court.
Why testify from England?
The courts gave Mr Milchan special permission to testify remotely from the English seaside resort of Brighton, near his current home, after his lawyers cited medical reasons for his refusal to travel to Israel.
Mr. Milchan owns an estate and other property in Israel and has said he is proud of his contribution to the country’s security. However, according to court documents, he has not entered the country for at least six years since he was interrogated by the Israeli government’s Israeli police investigating Mr Netanyahu’s corruption case.
Mr. Milchan is testifying from a room rented by the Israeli government for the occasion in the Old Ship Hotel in Brighton. Reporters and the public were denied entry, but Mr Netanyahu’s wife, Sara Netanyahu, was in the room, representing her husband.
Mr Netanyahu was expected to watch the proceedings on a screen in the Jerusalem courtroom.
Friend or foe?
According to prosecutors, the relationship between Mr. Milchan and Netanyahu dates back to 1999. An Israeli documentary about Mr. Milchan that aired a decade ago showed a framed letter signed by Mr. Netanyahu to Mr. Milchan in 2009, in which Mr. Netanyahu thanked Mr Milchan described him as “my brother,” adding, “You’re my rock in the storm.”
When asked in the documentary if he considered Mr Netanyahu a friend, Mr Milchan replied: “Yes, absolutely.”
It was not immediately clear whether Mr Milchan’s testimony would help exonerate Mr Netanyahu or doom him.
Mr Netanyahu has argued that he absolutely had to help Mr Milchan with his US visa because of his contribution to Israel’s national security and the American economy.
But Ms. Klein, Mr. Milchan’s personal assistant in Israel, said in her court testimony last year that Mr. Milchan had become increasingly concerned about the cost and legality of providing the Netanyahus with a steady supply of luxury goods.
When asked if the Netanyahus responded with gifts, Ms. Klein testified that she and Mr. Milchan once received keyrings from the Netanyahus with some sort of prime minister’s logo on them, and that Ms. Netanyahu occasionally bought gifts for them from an Israeli toy store little children of Mr. Milchan.
