Sara Netanyahu, the wife of Israel’s prime minister, has been formally notified that she is facing potential criminal charges for allegedly diverting tens of thousands of dollars of state money to use for private expenses.

The attorney general, Avichai Mandelblit, was considering prosecuting Benjamin Netanyahu’s wife for offences that include fraudulently procuring items, fraud and breach of trust, according to a justice ministry statement.

Mandelblit, who was appointed by the prime minister, informed Sara Netanyahu on Friday that, having examined the evidence and heard the positions of the relevant authorities, he had decided to move forward.

Netanyahu will be given a last opportunity to present her side of the case at an indictment hearing – an unusual step for a person who is not a public official.

Benjamin Netanyahu is also under pressure as a result of several overlapping corruption investigations, which have gained pace in recent weeks.



The allegations against Sara Netanyahu have been under investigation for more than two years, since Joseph Shapira, the state comptroller, issued a report on spending at the Netanyahus’ official residence.

She is suspected of excessive and unauthorised expenditure at the residence in Jerusalem – notably, engaging a private chef at state expense for meals claimed as official functions and then concealing that she did so. Both Netanyahus deny the allegations.

The prime minister, who is out of the country on an official visit, denounced the legal process against his wife, writing on his Facebook page that the claims “are absurd and will be proven to be baseless”.

He said: “Sara Netanyahu is a brave and honest woman and has never done anything wrong. Alongside her work as an expert educational psychologist treating children every week, she spends a lot of time helping children with cancer, Holocaust survivors and lone soldiers.”

The announcement of the potential proceedings marks only the latest chapter in the saga of Sara Netanyahu’s time in the Balfour Street residence, including a succession of lawsuits and an avalanche of media stories including unflattering references to her as “Israel’s Marie Antoinette”.

In the most high profile civil case, the Netanyahus former chief caretaker Meni Naftali successfully sued her for wrongful dismissal, alleging abusive and erratic behaviour.

Particularly damaging was Naftali’s allegation to an employment court that Sara Netanyahu was often drunk, consuming up to three bottles of champagne a day, a claim denied by the Netanyahus.

Since that case, Naftali has given evidence to the police investigation against Sara Netanyahu. He has also led weekly demonstrations outside the attorney general’s house in Petah Tikva for almost a year, calling for an acceleration of the investigations into the couple.

The Netanyahus have tried to blame Naftali for overspending. Benjamin Netanyahu has denounced his former caretaker in recent speeches and on Facebook, writing: “The sharp increase in spending at the prime minister’s residence was caused by offences committed by the problematic chief caretaker, Meni Naftali, a criminal state’s witness and a serial liar.

“The average monthly spending on ordered meals while [he worked there] was five times the monthly average during the four years that followed, when Naftali did not work there. That says it all.

“Naftali is making false accusations against the prime minister’s wife to extricate himself from accountability for the offences he committed.”

The allegations have set up the bizarre spectacle of Israel’s most powerful political figure publicly and repeatedly denouncing his former caretaker, a former soldier and official bodyguard who had one of the highest levels of security clearance.

Speaking to the Guardian in a lengthy interview a few days before the announcement of the charges, Naftali said he was not interested in “revenge” against the Netanyahus, even though he had given evidence to police about claims of financial misappropriation by Sara.

Over the years Naftali has described alleged temper tantrums, abuse and unreasonable demands by her.

Faced with the counter-accusations, Naftali said: “Everything she wanted to buy, she asked for and you had to bring it to her.”

Naftali also pointed out that all spending had to be signed off by the director of the household, not him.

On the specific question of the indictment for overcharging for meals, Naftali said there were different budget caps for entertaining different people.

“If it was an official diplomatic event, then she was allowed to bring in a chef and cleaner and bring in waiters and the budget is 450 shekels a head. But she always wanted to have the meal as if it was an official diplomatic meeting.”

He said his impression of the Netanyahus was that “they believe that everything belongs to them. They think they are king and queen. They would come back from abroad and say that, abroad, prime ministers have servants and people working for them, there was a feeling that the residence was not good enough for them.

“They dishonoured me. But I think the worst is not the personal aspect. It was when I saw how these people are running this country ... They spend money like royalty and have no clue what life is like for ordinary people.”