Greek island affair
Encyclopedia
The Greek island affair was an Israeli
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

 political scandal involving David Appel, Ariel Sharon
Ariel Sharon
Ariel Sharon is an Israeli statesman and retired general, who served as Israel’s 11th Prime Minister. He has been in a permanent vegetative state since suffering a stroke on 4 January 2006....

, at the time a minister in the Likud
Likud
Likud is the major center-right political party in Israel. It was founded in 1973 by Menachem Begin in an alliance with several right-wing and liberal parties. Likud's victory in the 1977 elections was a major turning point in the country's political history, marking the first time the left had...

 party, and others close to Sharon. The scandal consisted of charges, later dropped, that Appel had obtained favourable treatment from Sharon and his allies, which would help him and his fellow investors purchase the small rocky island of Patroklos at the tip of Attica
Attica
Attica is a historical region of Greece, containing Athens, the current capital of Greece. The historical region is centered on the Attic peninsula, which projects into the Aegean Sea...

, in the town of Palaia Fokaia
Palaia Fokaia
Palaia Fokaia is a former community and a town in southeastern Attica. Since the 2011 local government reform it is part of the municipality Saronikos, of which it is a municipal unit.-Geography:...

, for the purpose of building a multimillion-dollar resort complex. The project was unsuccessful.

While Ariel Sharon was Foreign Minister under Prime Minister Benjamin Netanyahu
Benjamin Netanyahu
Benjamin "Bibi" Netanyahu is the current Prime Minister of Israel. He serves also as the Chairman of the Likud Party, as a Knesset member, as the Health Minister of Israel, as the Pensioner Affairs Minister of Israel and as the Economic Strategy Minister of Israel.Netanyahu is the first and, to...

 in 1999, the indictment asserted, Appel contracted to pay Gilad Sharon, Ariel's son, then 30 years old and a business novice, US$20,000 a month as a business consultant to Appel's development project. It was reported that Gilad may have received up to US$3 million had the project been successful.

Israeli prosecutors argued that Appel signed the contract with Gilad Sharon in order to secure his father's help in facilitating the resort project. Sharon later hosted the deputy foreign minister of Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....

 during his visit to Israel. The indictment also charged that Appel had assisted Ehud Olmert
Ehud Olmert
Ehud Olmert is an Israeli politician and lawyer. He served as Prime Minister of Israel from 2006 to 2009, as a Cabinet Minister from 1988 to 1992 and from 2003 to 2006, and as Mayor of Jerusalem from 1993 to 2003....

's campaign for mayor of Jerusalem.

On June 14, 2004, Israel's Attorney General, Menachem Mazuz
Menachem Mazuz
Menachem Mazuz is an Israeli jurist, who served as the Israeli Attorney General in the years 2004-2010. Mazuz was born in Djerba, Tunisia, the fourth in a family of nine children of the rabbi of one of the island's Jewish communities...

, decided to close the case without criminal proceedings, because of lack of evidence. The land deal was actually negotiated before Sharon was Foreign Minister, and Sharon had voted against Appel's interests when he was Housing Minister in an earlier government. Mazuz also commented negatively on the prosecution: "There was a goal at the outset which influenced the decision-making process."
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