Hollywood producer Arnon Milchan is giving evidence at Benjamin Netanyahu’s corruption trial from a Brighton hotel.

He is answering questions about an alleged “supply line” of champagne and cigars funnelled to the Israeli leader and his wife said to have been in exchange for help with Milchan’s personal and business needs.

Milchan, who appeared by video-link from The Old Ship Hotel, is a key witness whose testimony is essential for prosecutors who are trying to prove that the Israeli Prime Minister committed fraud and breach of trust in one of three cases brought against him.

Prosecutors hope Milchan’s account, which extends throughout this week, will paint a picture of plush favours granted to Netanyahu and his wife that allegedly spurred the Israeli leader to use his position of power to advance Milchan’s interests.

The defence will try to lay out its case that Netanyahu was not acting in Milchan’s personal interests and that the gifts were just friendly gestures.

MOST READ:

Prosecution and defence lawyers are questioning Milchan in the hotel's conference room. While no journalists are allowed to be present there, Netanyahu’s wife Sara, on a private visit to Britain, will sit in.

Milchan’s testimony, expected to last six hours a day, is being aired in a Jerusalem courtroom for judges and other lawyers — who can also ask questions of him — and for journalists and other attendees to watch. Shortly after the testimony began, Netanyahu arrived in the courtroom. Milchan is not charged in the case.

Israeli Channel 13 aired footage of Sara Netanyahu and Milchan walking separately up the stairs in the hotel. A screen was set up in the Jerusalem courtroom to air the testimony.

According to the indictment, Milchan, whose production credits include such hits as Pretty Woman and 12 Years A Slave, gave Netanyahu and his wife boxes of cigars and crates of champagne over a period of several years that, along with jewellery, amounted to a value of £157,000 – what the indictment describes as a “supply line” of lavish gifts.

The indictment accuses Netanyahu of using his influential perch to assist Milchan to secure a US visa extension by drawing on his diplomatic contacts, among them former secretary of state John Kerry. Prosecutors also accuse Netanyahu of working to push legislation that would have granted Milchan millions in tax breaks.

“Considering the many links between the defendant Netanyahu and Milchan, the defendant Netanyahu should have entirely avoided dealing with Milchan’s affairs,” the indictment says.

Milchan is testifying in one of three cases being brought against Netanyahu. The other two, for which he is charged with bribery, fraud and breach of trust, accuse Netanyahu of exchanging regulatory favours with powerful media moguls for more positive coverage.

Netanyahu denies wrongdoing, claiming he is the victim of a witch-hunt orchestrated by a liberal media and a biased justice system.

His legal woes have dogged him politically, putting his fitness to rule while on trial at the centre of a political crisis that sent Israelis to the polls five times in under four years.

They also have fuelled accusations by critics that Netanyahu is pushing a contentious government plan to overhaul Israel’s judiciary as a way to escape the charges. Netanyahu denies those charges.

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

Witness accounts have shed light not only on the three cases but also revealed sensational details about Netanyahu’s character and his family’s reputation for living off the largesse of taxpayers and wealthy supporters. Milchan’s aide, Hadas Klein, testified last year that the family “loves gifts”.

The idea of a plea bargain has repeatedly surfaced, but prosecutors for now appear determined to see through the trial, despite reports last week that the judges warned them that the more serious crime of bribery will be hard to prove.