State Prosecutor Moshe Lador has
decided to close the investigation against Gilad Sharon, son of former Prime Minster Ariel Sharon,
in what was known as the Cyril Kern
affair, the State announced Thursday in a response to a petition filed by Sharon to the High Court of Justice. The investigation focused on allegations that millions of dollars were transferred to ex-PM Sharon's sons in 2002.
The State will specify its reasons for closing the case next week.
The affair involved allegations that Ariel Sharon received a $1.5 million loan from Kern, a South African businessman, so he could allegedly return illegal contributions he received during the Likud
primary elections. According to suspicions, Kern was the front man for Austrian businessman Martin Schlaff, who had monetary interests in Israel.
It was further claimed that an additional $3 million were transferred to the bank accounts of the Sharon family by Schlaff. Police suspected that of the $3M, only $1.5 million were returned to Kern by Gilad Sharon in late 2002.
Ariel Sharon (Archive photo: Ziv Koren)
In February 2011 a special investigation team from the Israel Police national fraud squad recommended that Gilad Sharon and Omri Sharon be charged as accessories to bribery.
Ariel Sharon has been in a coma since suffering a massive stroke
in January 2006 and is therefore unfit to stand trial.
In November Gilad Sharon appealed to the High Court, demanding that it instruct the State Prosecutor's Office and the attorney general to reach a decision on the matter.