Right-wing coalition lawmakers submitted a bill on Monday seeking to repeal the criminal offenses of fraud and breach of trust from the criminal code, which are charges that Prime Minister Benjamin Netanyahu is facing in his trial.
Netanyahu was indicted in 2020 on charges of bribery, fraud, and breach of trust in three cases known as cases 1000, 2000, and 4000.
The bill, titled “An End to Ambiguity in Criminal Law: Repeal of the Offense of Fraud and Breach of Trust,” was submitted by Coalition Whip Likud MK Ofir Katz, New Hope-United Right MK Michel Buskila, and RZP MK Simcha Rothman.
Their proposal calls to reestablish what criminal offenses are, and to also advance a reform of criminal law.
The bill is slated to be advanced in the Ministerial Committee for Legislation next week, before it moves to the Knesset.
According to the bill’s sponsors, the offense of fraud and breach of trust as it stands functions as a “catch-all” provision that “severely undermines the principle of legality and the foundations of criminal law.”
Coalition push to scrap breach of trust offense sparks outcry
The coalition lawmakers argued that the offense in the criminal codes is “vaguely” defined, claiming that it grants excessive power to prosecutors and law-enforcement authorities, enabling selective and biased enforcement.
The purpose of the legislation, Katz, Buskila, and Rothman said, is to “establish clearly defined offenses that are not currently addressed by law,” including conflicts of interest involving close relatives and government insider trading.
In parallel, the bill would advance the reform they said would be aimed at “strengthening disciplinary law and expanding enforcement tools in the areas of ethics.”
Under law, fraud and breach of trust are criminal offenses that apply to public officials who misuse their position in ways that harm the public – even if the same behavior would not be illegal for a private citizen.
The offenses, set out in Section 284 of the Penal Law, are often used in cases that do not involve cash bribes but still raise serious concerns about abuse of power. Courts have applied them to situations where officials acted with clear conflicts of interest, bent rules for personal or political benefit, or used their authority in ways that undermined trust in public institutions.
Over the years, judges have stressed that neither charge is meant to criminalize every mistake or ethical lapse by an elected official or civil servant. Not every poor decision, political favor, or administrative shortcut amounts to a crime. Instead, courts have said the question is whether the conduct crossed a serious line – one that violates basic expectations of honesty, loyalty, and fairness in public office.
Legal commentators opposing the efforts to repeal the offense say it fills a critical gap. Without it, they warn, some forms of blatant misconduct could fall outside criminal law – such as appointing close relatives to senior government jobs or steering public resources toward friends or associates without direct financial kickbacks.
Previous attempts to narrow the offense did not eliminate it. Courts have continued to apply fraud and breach of trust cautiously, while maintaining the clause as a central safeguard against abuse of public power.
The Movement for Quality Government in Israel warned on Monday that the coalition’s plans to repeal the offense of fraud and breach of trust were “not of public interest.” They were rather “the work of elected officials who are in conflict of interest and working to advance their interests and those of their relatives.
“The offense of fraud and breach of trust is one of the strongest defenses we have for integrity in public life,” said Tomer Naor, vice president of law and strategy of MQG. “Its abolition would leave us in a situation where corrupt behavior by elected officials, which is sophisticated enough not to be bribery, will remain legal.”
Opposition criticizes the proposal
Opposition lawmakers sharply criticized the proposal, calling it undemocratic and accusing the coalition of advancing legislation based on Netanyahu’s legal situation.
Opposition Leader Yesh Atid MK Yair Lapid said his party would fight the bill “in the Knesset, in the streets, and in the courts.”
“This is not a reform; it is a full-fledged coup that will turn Israel into a failed and backward third-world state,” Lapid said. “The coalition has declared war on democratic and advanced Israel, and we will mobilize and fight to protect it.”
Democrats MK Gilad Kariv said that with each bill the government advances, “the true goal of the regime overhaul becomes increasingly clear: canceling the criminal charges against Netanyahu, placing him above the law, and granting immunity to criminal government ministers to do whatever they please.
“The bill to abolish the offenses for which Netanyahu is charged will not pass,” Kariv added.
Former IDF chief of staff Gadi Eisenkot, head of the new party Yashar, also condemned the bill and vowed to replace the government.
“This is not motivated by love of Israel or responsibility toward its citizens,” Eisenkot said, accusing the government of acting to “ensure the survival of a bad coalition and preserve power.”
“The government of Israel is acting against the citizens of Israel,” he added.