Hollywood mogul tells trial that Benjamin Netanyahu and his wife demanded ‘supply line’ of gifts

A Hollywood magnate told Benjamin Netanyahu’s corruption trial that the Israeli prime minister and his wife demanded £157,000 worth of champagne and jewelery and complained if cigars were not the correct diameter.

Arnon Milchan, an Israeli producer of Hollywood blockbusters, described how he routinely gave tens of thousands of dollars worth of such gifts to Netanyahu and his wife Sara in exchange for personal and professional favors.

The 78-year-old producer appeared by video conference from a hotel in the British city of Brighton, near where he lives. He said the Netanyahus used code words to keep the lavish gifts under the radar.

He told prosecutors via video: “We called shirts “dwarves,” cigars we called “leaves,” champagne we called “roses.” When prosecutors asked who initiated the gift-giving, Milchan said it started as a kind gesture but quickly became “routine.”

Milchan – who later admitted that the gifts “disgusted” him – is a star witness whose testimony is essential to prosecutors trying to prove that Netanyahu committed fraud and breach of trust in one of three cases brought against him.

Prosecutors hope Milchan’s testimony, which began Sunday and is expected to continue this week and next, paints a picture of lavish favors extended to Netanyahu and his wife that reportedly spurred the Israeli leader to step down from his position of power. to further Milchan’s interests.

The defense will try to explain that Netanyahu was not acting in Milchan’s personal interests and that the gifts were merely kind gestures.

Prosecution and defense lawyers question Milchan in a conference room of a Brighton hotel. While no journalists are allowed there, Netanyahu’s wife Sara, on a private visit to Britain, will be there.

The producer cited security fears to avoid having to testify in Israel.

He recounted the process that the Netanyahus objected when they were given new types of champagne or cigars, recalling a specific moment when he sent the wrong type.

He said, “Ms. Netanyahu understood right away [and told me] that it wasn’t the right champagne… We smiled and fixed it,” said The Sunday Times.

Milchan said of the Prime Minister complaining about cigars: ‘Sometimes [the cigars] were not the same in diameter. He [Netanyahu] said it wasn’t right… so we bought him the diameter he wanted.’

Milchan’s testimony, which is expected to run for six hours a day, will be broadcast in a courtroom in Jerusalem for judges and other lawyers – who can also put questions to him – and for journalists and other attendees to view.

Netanyahu, who attended a number of hearings during his trial, arrived in court shortly after testimony began, flanked by his security guard and aides.

Arnon Milchan (pictured in Brighton on Sunday) appeared in court via video conference from a hotel in the British city of Brighton, near where he is based. He said Netanyahu and his wife Sara used code words to keep the lavish gifts under the radar

Prosecutors hope Milchan’s testimony, which began Sunday and is expected to continue this week and next, will paint a picture of the lavish favors extended to Netanyahu and his wife that allegedly urged the Israeli leader to use his position of power to push the advance Milchan’s interests.

Milchan, who is not being charged in the case, greeted him in Hebrew with Netanyahu’s nickname: “Shalom, Bibi!”

Israel’s Channel 13 broadcast footage of Sara Netanyahu and Milchan, 78, walking separately up the stairs at the hotel. A screen was placed in the Jerusalem courtroom to show the testimony.

According to the indictment, Milchan, whose production credits include hits like “Pretty Woman,” “12 Years a Slave,” and “The Revenant,” gave Netanyahu and his wife boxes of cigars and cases of champagne over a period of several years.

Together with jewelry, they were worth nearly $200,000 — what the indictment describes as a “stockline” of lavish gifts.

The indictment accuses Netanyahu of using his position of influence to help Milchan secure a US visa extension by using his diplomatic contacts, including former Secretary of State John Kerry. Prosecutors also accuse Netanyahu of working to pass legislation that would have brought Milchan millions in tax breaks.

“Given the many ties between the Defendant Netanyahu and Milchan, the Defendant Netanyahu should have completely avoided Milchan’s affairs,” the indictment says, adding that Netanyahu and Milchan, an Israeli citizen, have had ties since 1999.

Milchan is testifying in one of three cases being brought against Netanyahu.

The other two, for which he faces bribery, fraud and breach of trust charges, accuse Netanyahu of exchanging regulatory favors with powerful media moguls for more positive coverage.

Netanyahu denies wrongdoing and claims he is the victim of a witch hunt orchestrated by liberal media and a biased legal system.

Netanyahu’s legal troubles have dogged him politically, putting his fitness to rule at trial at the center of a political crisis that sent Israelis to the polls five times in less than four years.

They have also fueled accusations from critics that Netanyahu is pushing a controversial government plan to overhaul Israel’s judiciary as a way to escape the charges. Netanyahu denies those allegations.

Milchan said Benjamin Netanyahu and wife Sara (seen together in 2019) used code words to keep the extravagant gifts under the radar

The trial, which began in 2020 and has still not been heard from Netanyahu himself, has had more than 40 prosecution witnesses, including some of Netanyahu’s closest former confidants who turned against the prime minister.

Witness accounts have not only shed light on the three cases, but also revealed sensational details about Netanyahu’s character and his family’s reputation for living off the generosity of taxpayers and wealthy supporters.

Milchan’s assistant, Hadas Klein, testified last year that the family “loves gifts.”

The idea of ​​a plea has surfaced repeatedly, but prosecutors seem determined for now to push through with the trial, despite reports last week that judges warned them that the more serious offense of bribery will be difficult to prove.