ROANOKE TIMES 
                      Copyright (c) 1997, Roanoke Times

DATE: Thursday, April 17, 1997               TAG: 9704170059
SECTION: NATIONAL/INTERNATIONAL   PAGE: A-1  EDITION: METRO 
DATELINE: TEL AVIV, ISRAEL
SOURCE: ASSOCIATED PRESS


INDICTMENT OF NETANYAHU COULD BRING DOWN GOVERNMENT POLICE CITE EVIDENCE OF INFLUENCE TRADING

Several of the prime minister's allies have hinted they might bolt his coalition and deprive him of his majority in parliament.

In a move that could bring down the Israeli government and snarl the peace process, police have recommended indicting Prime Minister Benjamin Netanyahu for breach of trust in an influence-trading scandal.

Although scandals in Israel are not infrequent, the recommendation police handed to state attorney Edna Arbel on Wednesday was the harshest ever against an Israeli government. Arbel is expected to announce by early next week whether to indict Netanyahu.

Police recommendations are neither binding nor always followed. Yet this one has the potential to break apart Netanyahu's coalition. An indictment would ruin chances of bringing the opposition Labor Party into the government, a plan Netanyahu has been contemplating as a way of rescuing the disintegrating Middle East peace process.

The scandal started in January when Netanyahu appointed a political crony as attorney general. Jerusalem lawyer Roni Bar-On resigned after only a day in office under criticism that he was a legal lightweight chosen for his political connections.

Days later, Israel TV claimed the appointment was part of a conspiracy by senior officials who expected Bar-On to end the corruption trial of Aryeh Deri, leader of the religious Shas Party. Deri, in turn, would ensure the two Shas Cabinet ministers gave Netanyahu the necessary backing for the Israeli troop pullback from most of the West Bank town of Hebron.

Netanyahu denied the allegations and called for the inquiry. After 12 weeks, investigators Tuesday handed the state attorney their 995-page report.

News media initially reported that investigators had recommended charges against Deri, top Netanyahu aide Avigdor Lieberman and Justice Minister Tsahi Hanegbi. Deri reportedly was to be charged with blackmail, Lieberman with breach of trust for his role in relaying Deri's threats to Netanyahu, and Hanegbi with breach of trust for misleading the Cabinet about Bar-On's qualifications.

On Wednesday, however, both Israeli TV stations reported that police had recommended charging Netanyahu himself with fraud and breach of trust. Officials confirmed the reports.

``Against the prime minister, there is enough evidence to submit an indictment,'' Police Commissioner Assaf Hefetz said.

The prime minister's attorney, Yaakov Weinroth, said the police findings against his client were ambiguous, and Netanyahu would be questioned again.

Opposition leaders Wednesday called on Netanyahu to suspend himself, but radio reports said Netanyahu had no plans to step down, even temporarily.

An indictment would not force Netanyahu's resignation, but several allies already have hinted they might bolt the ruling coalition and deprive Netanyahu of his majority in parliament. The coalition has 66 of 120 seats.

Netanyahu could try to govern with a minority, but it would be nearly impossible. New elections would probably have to be called. The next scheduled vote is in 2000.

The peace process already is in deep crisis. Talks with the Palestinians have been suspended since last month when Israel began building a neighborhood in the Israeli-annexed part of Jerusalem, and there have been near-daily riots in the West Bank.

President Clinton's envoy in the Mideast, Dennis Ross would not comment on the scandal. ``We focus on the issue of the peace process, and the issues related to what is going on within Israel are matters for the Israelis to resolve,'' Ross said after meeting with Palestinian leader Yasser Arafat.


LENGTH: Medium:   72 lines
ILLUSTRATION: PHOTO:  (headshot) Netanyahu. color.























































by CNB