James Packer pays $1.8m to law firm also defending Netanyahu’s corruption charges

Billionaire James Packer has paid at least $US1.25 million ($1.78 million) to the Tel Aviv law firm also defending Benjamin Netanyahu against allegations the Israeli prime minister corruptly received benefits from the Australian businessman and other wealthy supporters a decade ago.

An investigation by this masthead on the eve of seismic Israeli elections has uncovered a money trail involving monthly $US50,000 wire transfers over the past two years from a bank account controlled by Packer’s company to the account of Netanyahu’s legal defence firm.

The first monthly “retainer” payment from the Citibank account of Packer’s firm Consolidated Press International was made on September 23, 2024 to the account of law firm Hadad Roth Shenhar at Israel’s Mizrahi Tefahot bank.

The monthly payments, which Packer has not denied, have continued for two years. A source aware of the payments, but not authorised to speak publicly, said they should be urgently investigated to determine if Netanyahu was receiving an undisclosed benefit from Packer as the law firm defends the Israeli prime minister over allegations he unlawfully accepted expensive gifts from Packer between 2014 and 2016.

Israeli authorities have repeatedly blocked Netanyahu from receiving funds from wealthy backers to pay for his defence in his long-running corruption case. This masthead has not confirmed that Netanyahu benefited from the payments.

If it was found Packer’s payments to the law firm directly or indirectly benefited Netanyahu, the source alleged the payments could involve fresh breaches of Israeli laws governing how politicians can accept support, and might also fall under US laws that govern financial transactions or possible benefits foreign politicians receive from businesses.

Asked about the allegations on Monday morning, a spokesperson for Netanyahu said: “I couldn’t give a monkey’s about your questions.”

“We are very busy. We have an election on right now.”

When contacted by this masthead on Friday night, Packer did not deny the rolling $US50,000 payments but declined to comment.

A source familiar with the 59-year-old former media mogul’s financial dealings later insisted the wire transfers to Netanyahu’s lawyers were for work done for Packer – including “deal finding” in Israel where Packer has business interests – and unrelated to the prime minister’s court case.

This masthead subsequently requested evidence of any deals in Israel or work undertaken by the law firm, but neither Packer nor his company have yet responded.

In addition to running Netanyahu’s defence against claims the Israeli leader broke his country’s law by accepting luxury goods from Packer and wealthy film producer Arnon Milchan, law firm Hadad Roth Shenhar is helping Netanyahu contest allegations that he improperly traded favours with an Israeli newspaper publisher and telecommunications company.

Netanyahu’s primary defence attorney is Hadad Roth Shenhar’s most senior lawyer, Amit Hadad. Hadad has gained prominence by appearing for several Israeli government ministers and business identities, but Netanyahu is his most notable client.

Hadad did not respond to questions from this masthead.

In addition to the ongoing corruption trial, Netanyahu has controversially, and unsuccessfully, sought legal permission allowing his wealthy overseas friends to fund the law firm Hadad Roth Shenhar.

Israeli authorities have ruled Netanyahu cannot rely on the rich backers because this would amount to a breach of trust and conflict of interest.

Transparency International said Packer’s decision to pay $US1.25 million to the law firm defending Netanyahu demanded urgent and independent scrutiny.

“As there are already significant corruption charges against Mr Netanyahu relating to past gifts from Mr Packer, and other business associates, these new allegations must be thoroughly investigated by authorities,” said Transparency International’s Australian director, Clancy Moore. Moore also cautioned that evidence might yet show the payments were unrelated to Netanyahu.

Moore stressed scrutiny was also required in light of the previous concerns about who could pay for Netanyahu’s legal fees.

“Significantly, Israeli authorities have repeatedly ruled that Mr Netanyahu can’t use funds from foreign benefactors to fund his legal defence against corruption charges due to conflict of interests and his failure to disclose his wealth,” Moore said.

Packer found himself entangled in Netanyahu’s corruption case after gifting the prime minister champagne and cigars more than a decade ago, but has not been accused of any wrongdoing and has not been called as a witness to the prime minister’s corruption trial.

Packer and Netanyahu at the time lived in neighbouring villas in the exclusive township of Caesarea and were regular guests at each other’s homes. Netanyahu even had a key to Packer’s luxury property.

Packer once called the Israeli prime minister “probably the most impressive man I’ve ever met”.

Australian Federal Police officers interviewed Packer on behalf of their Israeli counterparts in late 2017 but stressed he was a witness in the case – not a suspect – and that he co-operated fully.

This masthead submitted detailed questions to Packer’s privately owned Consolidated Press Holdings (CPH). The company did not reply.

The questions included whether it was appropriate for Packer to make payments to Netanyahu’s law firm given it was defending him in a case which involved the Australian businessman, and why Hadad Roth Shenhar was selected for investment advice.

Consolidated Press International (CPI) is one of several private investment arms operated by Packer. At the time that payments to Netanyahu’s law firm began, CPI had more than $600 million in investments in technology companies including Taiwan semiconductor Nvidia and Facebook owner Meta.

Packer later pivoted to gambling stocks through large stakes in Las Vegas-based poker machine manufacturer Light and Wonder, and Sportsbet’s parent company Flutter. He has also invested heavily in AI.

Tuesday’s election in Israel represents a crucial juncture for the Middle East, with Netanyahu’s right-wing government facing potential defeat. His removal from office would trigger a reset of the conflicts in Iran and Gaza and redraw the relationship between Jerusalem and US President Donald Trump.

Netanyahu – Israel’s longest serving prime minister and the country’s first sitting leader to be charged with a crime – has repeatedly invoked the security situation in the Middle East to argue for delays in giving evidence at his corruption trial.

Known as Case 1000, Netanyahu was in 2019 indicted on fraud and breach of trust charges for accepting luxury gifts from Packer and film producer Arnon Milchan worth about $295,000. Netanyahu is also accused of intervening on behalf of Milchan for various business matters, including a US visa renewal.

The 77-year-old prime minister completed his evidence on these charges and other unrelated allegations in July. The court is yet to deliver a verdict.

Milchan gave evidence via video link 2023, and told the heavily fortified courtroom in Tel Aviv: “I know that Packer really wanted to be connected and endear himself to Netanyahu.”

The Israeli leader and Packer became estranged after the corruption allegations first emerged in 2016 and did not talk for up to eight years. However, the pair reconnected around the time Netanyahu addressed US Congress in July 2024, when Packer sat in the viewing gallery as a special guest. They later shared a Shabbat dinner.

The first payment by Packer to the PM’s law firm was made eight weeks after the two rekindled their friendship

The prime minister earlier this year asked Israeli President Isaac Herzog to be pardoned to end the long-running legal saga, claiming the trial was “undermining national unity”, and that a pardon would help Israel “tap new opportunities with the US”.