2 Israeli PM's confidants questioned in major corruption affair

Two of Israeli Prime Minister Benjamin Netanyahu's closest advisors were questioned Tuesday by the police for a third consecutive day in a criminal investigation into suspected corruption around the acquisition of German submarines.

Yitzhak Molcho, Netanyahu's diplomatic envoy, and David Shimron, Netanyahu's cousin and his family lawyer, were questioned in the offices of Lahav 433, Israel's FBI.

The police released their identity on Tuesday, a day after they were questioned for the second time.

Shimron, one of Netanyahu's closest proxies, represented the German conglomerate ThyssenKrupp in Israel. Molcho is a lawyer who was in charge of negotiations with the Palestinians on behalf of the government. He is also a relative of Netanyahu and a business partner of Shimron. Last week, Molcho said he resigns his position as a diplomatic envoy.

Police spokeswoman Luba Samri declined to reveal why Molcho and Shirmon were questioned but said they are part of the so-called "3,000 case," or the submarine affair, which involves suspected corruption in a procurement deal of ThyssenKrupp submarines.

The final signing of the deal was put on hold for three months due to the police investigation, but in October Germany signed a deal to sell three ThyssenKrupp-made Dolphin submarines to Israel's navy.

Netanyahu himself has not been named as a suspect in the affair.

He is a suspect in two other criminal investigations involving corruption and breach of trust. One involves receiving luxury gifts from Israeli-U.S. Hollywood tycoon Arnon Milchan and the other involves alleged secret deals to receive favorable coverage in Yediot Aharonot, one of Israel's largest daily newspapers.