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Probe launched into Israeli opposition leader's former firm

<span>Photograph: Jack Guez/AFP/Getty</span>
Photograph: Jack Guez/AFP/Getty

Israeli prosecutors plan to launch a criminal investigation into a bankrupted former startup headed by opposition leader Benny Gantz, who is set to face off against prime minister Benjamin Netanyahu in an election in less than two weeks’ time.

In a statement released on Thursday night, the justice ministry said police would investigate the failed cybersecurity firm, Fifth Dimension. It did not name Gantz as a suspect in the case or detail what the allegations were.

However, the announcement could rock the election campaign, not only due to its timing so close to the national vote on 2 March, but also because Gantz’s key strategy has been to present himself as an honest, clean alternative to Netanyahu.

The 70-year-old rightwing prime minister has been indicted in three damning corruption cases, with the first hearing scheduled to begin shortly after the election. He faces charges of bribery, fraud and breach of trust. Netanyahu has repeatedly denied all the allegations.

Earlier on Thursday, Israeli media reported on an impending investigation into an allegedly suspect deal between Fifth Dimension, which made intelligence-gathering technology for law enforcement, and the Israeli police. In response, Gantz told the domestic Army Radio that he was “completely relaxed”.

“The matter was examined in the past, and no suspicions of criminal offences were found,” he said. “And, as opposed to other people, I have full faith in the law enforcement agencies, in the investigation systems. And I am prepared for any investigation or inquiry.”

Recent polls show Gantz’s Blue and White party marginally ahead of Netanyahu’s Likud party, although neither candidate is predicted to have enough seats to form a parliamentary majority. That scenario has already played out twice during the past year after two inconclusive elections led to a prolonged political crisis.