Prime Minister Benjamin Netanyahu hired top criminal lawyer Jacob Weinroth on Thursday to defend him in the criminal investigation that could emerge from allegations of abuse of funds at the Prime Minister’s Residence.

According to Channel 2, Netanyahu was “preparing for a criminal investigation,” following an announcement by the Justice Ministry earlier Thursday that an ex-caretaker of the official residence, Menny Naftali, would be granted immunity from prosecution after he told police he possessed incriminating evidence against Netanyahu. The evidence was gathered during his term of employment in the service of the prime minister and his family.

The Channel 2 report added that the attorney general’s office was examining details beyond what was written in a State Comptroller report on excessive spending by the prime minister and his wife published on Tuesday. According to suspicions cited in the TV report, the Netanyahus systematically used state funds to finance private expenses.

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Channel 2 and other Hebrew media reports suggested that the granting of immunity to Naftali indicated that the affair was taking on greater significance. Haaretz quoted unnamed Likud sources saying they were “preparing for the possibility” that Netanyahu would be investigated.

Weinroth defended the late prime minister Ariel Sharon in the late 1990s when, as foreign minister, Sharon faced allegations of fraud, bribery and obstruction of justice. In 2007, Weinroth also represented former finance minister Avraham Hirshson, who would go on to serve a prison term for embezzlement of public funds.

Naftali testified voluntarily to police’s 433 fraud unit two weeks ago and recounted some of the details that appeared Tuesday in the special state comptroller report showing excessive spending by the prime minister and his wife at the official residence in Jerusalem. After telling investigators about the financial irregularities for some 90 minutes, Naftali asked for immunity, saying that further testimony would reveal incidents that could implicate him.

Investigators from the fraud unit decided to stop Naftali’s testimony at that point and turn to Attorney General Yehuda Weinstein to approve the request. The attorney general’s office examined the two-week-old testimony by Naftali and decided to grant him the immunity.

Naftali, who testified for several more hours on Thursday, served as caretaker of the Prime Minister’s Residence for nearly two years. He resigned after he wasn’t given the tenure that, he claimed, was promised him. He has filed suit against the Prime Minister’s Office, the deputy director-general of operations at the office, Ezra Saidoff, the prime minister’s wife, Sara Netanyahu, and Netanyahu himself.

Naftali seeks NIS 1.1 million ($286,000) in damages. He also separately sued Netanyahu for libel following an interview where Netanyahu said Naftali had been fired, even though he claims to have resigned.

Naftali recently asked the Jerusalem Labor Court to summon Sara Netanyahu to testify, and she is set to address the court after the March 17 elections.

News of Naftali’s immunity deal came after he announced another libel suit against Netanayahu earlier Thursday, this time for a barrage of accusations against him following the publication of the State Comptroller’s report.

The Likud headquarters tried earlier this week to deflect blame for apparent financial impropriety at the Prime Minister’s Residence by blaming Naftali for inflated expenses during the time he served as caretaker.

The spending report released by State Comptroller Yosef Shapira Tuesday detailed lavish spending by Netanyahu and his wife at his official residence in Jerusalem and private home in Caesarea and alleged possible criminal misdeeds by the two.

The Netanyahus could face criminal charges over the accusation that Sara Netanyahu pocketed some NIS 4,000 ($1,035) of bottle refunds for recycling. Accusations that she purchased a set of patio furniture identical to the patio furniture at the official residence, which was subsequently delivered to the Netanyahu’s private residence, could also get them in trouble.

A third alleged scandal, over a scheme to overpay electrician Avi Pachima — an apparent Likud apparatchik — by inviting him to do work on weekends and holidays and a subsequent cover-up, may also result in criminal charges.

Times of Israel staff contributed to this report.