But the reach of Israeli corruption is global.
As a self-declared Jewish state, one that formally regards every Jew in the world as being personally invested in Israel, a network of personal and financial ties that are intentionally opaque has developed between Israeli businesses and officials, on the one hand, and overseas Jewish organisations, donors, investors and criminals, on the other.
Israeli authorities are aware that criminal gangs with international connections, often in the former Soviet Union, recycle their money in the Israeli economy, often laundering it in real estate purchases. A leaked U.S. embassy cable in 2009 warned that Israel was in danger of becoming a "promised land" for organized crime.
The Haaretz newspaper observed recently that this underground economy had become so big -- with an annual turnover reaching as much $39 billion -- Israel could find itself on the same list as Iran as "one of the leading state financiers of global terrorism."
Some of this shadow economy is authorized at the highest levels. Israel confers privileged status on international Zionist organizations like the Jewish National Fund and World Zionist Organisation that funnel in donations from Jews around the world. These "charitable" organizations enjoy semi-governmental status, even though they can operate outside Israel's laws.
The WZO setttlement division, for example, secretly pumps money into illegal settlements in the West Bank, hiding the money even from Israel's state auditors. Funds are moved around out of sight, leaving plenty of room for corruption among officials, in addition to the inherent illegality of the settlement enterprise.
And then there are the Jewish tycoons from the US, Canada, Europe and Australia who treat Israel as part of their philanthropic investment portfolio. Their reasons include ideological zeal to realize a Greater Israel, salving their consciences for not living in Israel, or extending their influence to the "safe haven" they or their family may need in times of trouble.
Most Israeli politicians rely on overseas Jewish funders. Netanyahu won his Likud party's primaries in 2014 exclusively with the help of foreign donors, all but one of them American.
Personifying this unhealthy external interference in Israeli politics is Sheldon Adelson, the U.S. casino magnate who is Netanyahu's main patron. Adelson has done much more than channel donations to Netanyahu's campaign coffers. He created a newspaper to get Netanyahu elected and keep him in office.
The free daily Israel Hayom, founded 10 years ago, is now the biggest-circulation paper in Israel and is known locally as Bibi-ton, or Bibi's newspaper, in reference to Netanyahu's nickname. A recent investigation by Haaretz found that Adelson had sunk an astronomic sum into Israel Hayom -- some $190 million in its first seven years alone -- to keep it afloat.
At the same time, Adelson has been sponsoring Republican politicians, including the new occupant of the White House, Donald Trump, to ensure he has an outsize influence in the U.S. as well. Trump's sudden conversion to Netanyahu's pro-settlement agenda coincided with his need for Adelson's support in the presidential campaign.
War against the mediaAdelson and his Israel Hayom newspaper are at the heart of Netanyahu's current troubles. The tapes in Case 2000 are audio recordings of conversations between Netanyahu and Arnon Mozes, the Israeli owner of the Yedioth Ahronoth media group, which includes the country's largest paid-for newspaper. Mozes' desperate need to save his business empire appears to have driven him into Netanyahu's embrace.
Adelson and Netanyahu's aim in establishing Israel Hayom in 2007 was not only to create a propaganda platform for Netanyahu. It was also intended to drive rival papers, especially Yedioth Ahronoth, out of business by forcing down their income from advertising revenue. U.S. businessman Adelson's pockets are much deeper than those of Israeli businessman Mozes.
This was effectively a vendetta by Netanyahu and Adelson against Mozes for using his media empire, which once enjoyed near-monopoly status in Israel, to damage Netanyahu and support rival politicians. Yair Lapid, a former columnist at Yedioth, is today leader of the Yesh Atid party, a potential challenger to Netanyahu for prime minister. He has in the past received strong backing from his former paper.
In the tapes, Mozes and Netanyahu discuss a deal that would guarantee the Yedioth media group cheerlead for Netanyahu in return for his government passing legislation to limit Israel Hayom's circulation and possibly force it to charge a cover price. The pair appear to have broken off contacts some time before Israel's general election in March 2015.
Had the talks succeeded, Netanyahu would have enjoyed almost blanket support in the mainstream press. The holdout would have been the liberal, and very small-circulation, Haaretz daily.
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