ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Monday, April 21, 1997 TAG: 9704210154
SECTION: NATIONAL/INTERNATIONAL PAGE: A-2 EDITION: METRO
DATELINE: JERUSALEM
SOURCE: ASSOCIATED PRESS
Benjamin Netanyahu's actions ``raised puzzling questions,'' but prosecutors lacked sufficient evidence.
Prime Minister Benjamin Netanyahu escaped indictment in an influence-peddling scandal Sunday, with prosecutors saying they lacked evidence to try him on fraud and breach of trust charges despite his ``puzzling'' conduct.
Netanyahu, his reputation and credibility damaged, still faces a political crisis that reduces the likelihood of progress in the already limping peace process with the Palestinians. Opposition leaders urged him to step down and call new elections, and coalition parties were considering whether to bolt.
The prosecution's 52-page report was critical but fell short of the political earthquake predicted after police recommended charges last week.
``The decision is to close - for lack of sufficient evidence - the case against the prime minister,'' Attorney General Elyakim Rubinstein said at a news conference.
Rubinstein said evidence provided by police did suggest that Netanyahu might have appointed Roni Bar-On as attorney general to satisfy a coalition ally who is facing a corruption trial.
Netanyahu's actions ``raised puzzling questions,'' Rubinstein said. ``From the evidence, there is suspicion that there were other [than legitimate] considerations'' in the appointment. ``But we don't think this can be proved beyond a reasonable doubt.''
Rubinstein also rejected a police recommendation to indict Justice Minister Tsachi Hanegbi. He said prosecutors still were weighing charges against Arieh Deri, the leader of the ultra-Orthodox Shas Party suspected of trying to engineer Bar-On's appointment in exchange for a plea bargain that would keep Deri out of jail.
Rubinstein said that Netanyahu's top political aide, Avigdor Lieberman, and a contractor who is close to Netanyahu, David Appel, would face further investigation.
Netanyahu admitted Sunday that he had made mistakes but said that the affair was ``twisted beyond recognition'' by journalists and rival politicians who cannot accept his election victory over peacemaker Shimon Peres last May.
``The bottom line is this: I committed no crime, and the attorney general confirmed this,'' Netanyahu said in a nationally televised address.
``It's clear to me today that we must improve the process of choosing senior officials,'' he said. ``But there is a big difference between a mistake and a crime.''
State Attorney Edna Arbel said some on her staff thought the evidence against Netanyahu was sufficient to charge him.
Opposition Labor Party officials said Netanyahu would find it difficult to govern. Peres, who heads Labor, demanded Netanyahu call new elections, saying the suspicions and police recommendations against him have destroyed his legitimacy.
``The prime minister stands under heavy shadow of loss of confidence,'' Peres said.
Yossi Sarid, head of the liberal Meretz Party, said he would ask the Supreme Court to overturn the prosecutors' decision and force Netanyahu's indictment. But the most immediate threat to Netanyahu may come from the Shas Party - whose leaders had suggested they would bolt the coalition if they thought Deri was being made the scapegoat.
LENGTH: Medium: 68 linesby CNB