DAY 543 OF THE WAR: Netanyahu Withdraws Proposed Shin Bet Appointment; Netanyahu Aides Remanded For Three Days, After Judge Finds Sufficient Evidence Against Them in Qatargate

Tel Aviv Diary, April 1, 2025

There are currently 59 hostages in Gaza, 24 of whom are believed to still be alive. However, if you watched today’s news broadcasts in Israel, it might not be immediately apparent that our fellow Israelis remain detained deep underground within Gaza's dark tunnels.

This glaring oversight persists despite the featuring of interviews with family members of hostages in nearly every news segment. Instead, the news cycle has predominantly revolved around developments in Prime Minister Netanyahu’s office.

At 8 a.m. this morning, the Prime Minister's Office issued a statement. It announced that after further reflection following yesterday's meeting with his nominee for the new head of Shin Bet, Eli Sharvit, Prime Minister Netanyahu has concluded that Sharvit is not the right fit for the role.

The determination to rescind Sharvit’s appointment marked an unsurprising conclusion to what many regarded as a farcical nomination— a decision even some of Netanyahu's staunchest Likud supporters found difficult to defend.

To recap … Yesterday morning, the Prime Minister’s Office announced that Eli Sharvit had been selected as the best candidate for the position of new Shin Bet Chief. Sharvit is by all accounts, a dedicated, open-minded and successful general. The appointment was initially well received until a photo emerged of Sharvit participating in a demonstration against the judicial overhaul. Additionally, reports emerged that Sharvit had signed a petition—along with hundreds of former naval officers—opposing Justice Minister Yariv Levin’s plan to undermine the judiciary. Almost immediately, backbench Likud MKs launched a vigorous campaign against the nomination, claiming Sharvit was “not one of us” and accusing him of being part of “the deep state”.

By early afternoon, it was clear that Netanyahu was reconsidering Sharvit’s appointment. Despite it being early morning in Washington, DC, Netanyahu's office began circulating the rationale that the Trump administration opposed the nomination due to an op-ed piece Sharvit wrote in January, which criticized Trump’s climate policies in an Israeli financial newspaper. Although the excuse was flimsy, it was nevertheless repeated by a handful of Netanyahu's allies who appeared on television to support him. The simple truth is that Netanyahu depends entirely on his political base, and when they criticize him, he folds easily, much like a house of cards.

The entire episode raised further questions about the decision-making processes within this government. It also clearly weakened Netanyahu’s legal argument that the firing of Shin Bet Chief Ronen Bar was purely based on professional considerations and not influenced by political motives.

QATARGATE

One theory suggests Sharvit’s appointment was meant as a smokescreen to distract from the escalating Qatargate scandal—including the arrests of two staffers from the Prime Minister's Office, Jonatan Urich and Eli Feldstein, along with Netanyahu’s own testimony. If diversion was the goal, it evidently backfired. Qatargate has since dominated the headlines, completely overshadowing the botched Shin Bet nomination.

The Qatargate scandal continued to unfold today, as police sought a nine-day extension for the detention of Urich and Feldstein. The court, which seldom accedes to the full request of the police, granted a three-day extension instead. Yet, the most significant development emerged from the judge's remarks, stating there was reasonable evidence that Urich and Feldstein had accepted money from Qatar. In return, they had advanced Qatari interests, including deceiving journalists into reporting that the Prime Minister’s Office preferred Qatar over Egypt, thereby depicting Egypt as an unreliable partner. Additional potential charges are also under consideration, including the possibility that classified information was passed to the Qataris.

A journalist has also been implicated in the Qatargate affair. Reports tonight identified the journalist as Tzvika Klein, editor of the Jerusalem Post. I am aware that Klein visited Qatar, and I suspect that this visit was arranged by one of the individuals from the Prime Minister’s Office who is now facing charges.

For the first time in Netanyahu’s decades as party head, there is starting to be some criticism from within Likud. Avi Dichter, the Minister of Agriculture and former head of Shin Bet, stated today individuals on Qatar’s payroll have no place in the Prime Minister's office. Additionally, the mayor of Dimona, a long-time Likud member and Netanyahu supporter, stated today that the time has come to end the war and secure the release of all hostages before Passover.

LEBANON

Israel launched an attack in Beirut last night. Here is the official announcement, a Joint statement from the IDF, Shin Bet, and the Mossad Spokespersons:

During the night, IDF fighter jets, guided by Shin Bet intelligence, carried out a strike in the Dahiya area of Beirut, eliminating Hassan Ali Mahmoud Badr, an operative in Unit 3900 of the Hezbollah terrorist organization and the Iranian Quds Force.

Hassan Badr had recently been working in cooperation with the Hamas terrorist organization, directing Hamas operatives and assisting them in advancing a serious terrorist plot targeting Israeli civilians in the immediate future.

Because the attack was imminent and specifically aimed at harming Israeli civilians, Hassan Badr was targeted and eliminated immediately in order to remove the threat.

These actions by the Hezbollah terrorist organization constitute a violation of the understandings between Israel and Lebanon and pose a direct threat to the State of Israel and its citizens.

The IDF, Shin Bet, and the Mossad will continue to operate to thwart any danger to the citizens of the State of Israel—whether inside the country or beyond its borders.

Hezbollah has threatened to retaliate following the attack, but at the moment, such a response seems unlikely. The announcement concerning the target made it clear that the threat was immediate and involved plans for an imminent attack.

GAZA

Today, there were reports of several small and scattered demonstrations against Hamas in Gaza. Hamas had managed to suppress the first wave of demonstrations by torturing and killing one of the leaders, and by arranging for Islamic Jihad to fire rockets from the areas where protests were planned.

The demonstrations were not entirely spontaneous—they were partially orchestrated by a nonpolitical group known as “Gazans Want to Live.” These individuals are desperate for a normal life and hold Hamas accountable for the current state of affairs in Gaza. Members of the group are also highly critical of Al Jazeera, which they perceive as a propaganda tool for Hamas. Activists within the group complain that Al Jazeera consistently broadcasts images of heroic Hamas fighters engaging Israel, while neglecting to report on Hamas's devastating impact on Gaza.

As expected, Al Jazeera did not cover the protests. It’s important to clarify that these demonstrators should not be mistaken for pro-Israel sympathizers, but they may represent a glimmer of promise for the future. They are unwilling to continue sacrificing their lives in a perpetual war with Israel. Although the size of this group and its potential to challenge Hamas’s control remain uncertain, their mere presence offers a beacon of hope.

BENNETT FORMS NEW PARTY

Today, former Prime Minister Naftali Bennett announced he has registered a new political party, temporarily named “Bennett 2026.” This announcement signifies Bennett’s first step back into the political arena. According to current polls, Bennett’s party would receive more votes than any other party. However, as history has repeatedly shown in Israeli politics, there is a significant gap between poll predictions and actual election results, a gap where the aspirations of many candidates have faltered

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NEED FOR A NEW INTERNATIONAL AIRPORT

A story that encapsulates the problems with long-term planning in Israel is the ongoing debate over the country’s second international airport. Before COVID and the current war, passenger traffic at Ben Gurion Airport was rising rapidly, and it was projected that the airport would reach maximum capacity within a decade. It’s important to note that the capacity issue is not on the ground—where new terminals can be built—but in the airspace, as the flight paths are already nearing saturation.

A government commission was established to assess various options, reviewing over 20 potential locations, including the feasibility of constructing an offshore airport. After a thorough professional review, the selection was narrowed down to two sites: the Ramat David Airbase in the Jezreel Valley and the Nevatim Airbase in the Negev. Experts ultimately favored Ramat David for several reasons: it is situated in a region with three million residents, is proximate to major Christian tourist destinations, and lies adjacent to a railway line.

In contrast, Nevatim is located in a less populated area and, crucially, the Air Force is strongly against its use, citing significant operational concerns. Additionally, due to its location, flight paths to Nevatim would overlap with those used by Ben Gurion, significantly limiting its potential as a supplementary airport. As a result, the government initially decided in favor of Ramat David.

This week, a bill mandating the government to start construction on a new international airport at Nevatim within seven years passed its first reading in the Knesset—being contrary to all expert opinions. The bill, championed by MK Almog Cohen—who resides in the Negev and whose support is crucial to the coalition—moved forward.

The legislation was poised for its final readings, but at the direct behest of Prime Minister Netanyahu, the bill was abruptly shelved following a briefing from the Defense Ministry. Meanwhile, no developments have occurred at any proposed site, perpetuating the stagnation of one of Israel's most critical infrastructure needs.

BUSINESS

Elbit Systems Ltd

Elbit Systems Ltd has been awarded an approximately $130 million contract by a European customer for the supply of rockets for the Precise and Universal Launching System (PULS). The contract will be executed over a period of three years.

Under the contract, Elbit Systems will supply a variety of advanced rocket systems, including training rockets, the ACCULAR (range of up to 35 km), EXTRA (range of up to 150 km), and the Predator Hawk (range of up to 300 km). These systems are designed to significantly enhance the operational capabilities of the customer's defense forces, providing a substantial boost in their strategic and tactical operations.

The PULS system is an advanced and versatile artillery rocket system capable of launching a wide range of ammunition types from a single platform. It offers precision strike capabilities with an effective range of up to 300 kilometers, making it a highly effective solution for modern battlefield environments.

Yehuda (Udi) Vered, General Manager of Elbit Systems Land:

We are proud to have been awarded this contract to deliver training rockets and operational precision guided rockets to an additional European customer for its PULS launchers. This achievement underscores the increased demand both in Europe and globally for the PULS system, its state-of-the-art capabilities and broad range of rocket munitions". He added: "As European nations continue to enhance their defense capabilities, the selection of PULS reaffirms its strategic value in modern battlefield scenarios.

IsraelTech

Here’s the next installment of our interview series from our partners at Israel Tech.

How UpWest is redefining success for Israeli Startup in America

Israeli Founders: Want to Crack the U.S. Market? This VC Thinks You’re Doing It Wrong … Israel’s startup founders are among the best in the world, but when it comes to scaling in the U.S., the playbook isn’t always clear. Lia Cromwell, Partner at UpWest, sits down with IsraelTech to reveal what most Israeli entrepreneurs get wrong about breaking into the U.S. market - and how to fix it.

In this no-filter interview, we talk about:

✅ Why relocating to the U.S. is non-negotiable for Israeli startups (and what happens if you don’t)

✅ The biggest cultural missteps Israeli founders make when pitching to American VCs & customers

✅ The secret to winning top-tier U.S. clients (Hint: It’s not just about the tech)

✅ How Israelis actually handle failure better than Americans

UpWest has backed 100+ Israeli startups that have raised over $3B in follow-on funding—this is a rare inside look at what it really takes to succeed. Here is small installment the rest can be seen here

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TRAVEL ACROSS ISRAEL

Banias Nature Reserve

The next destination on our itinerary will be the Banias Nature Reserve. Located in the Golan Heights, the Banias Nature Reserve has stunning natural landscapes, and archaeological treasures. At the heart of the reserve is the Banias Spring, one of the primary sources of the Jordan River. Water emerges from a vast cave, shaped by its flow, and travels through dense woodlands and rugged terrain, presenting some of Israel’s most stunning scenery. The climate in the reserve is relatively cool and humid, offering a refreshing escape during the warmer months.

The reserve contains two main attractions: the Banias Spring and Sanctuary Complex, and the Banias Waterfall, which is the largest waterfall in Israel by volume. The hiking trails in the area connect these features through a series of scenic routes, including the Suspended Trail, a modern wooden path that allows visitors to walk above the river’s rushing water. The sound of the falls, the thick greenery, and the sight of native flora and fauna—including rock hyraxes, wild boars, and dozens of bird species—create an immersive natural experience.

Historically, the Banias site was known as Caesarea Philippi, named after Herod Philip, son of Herod the Great, who expanded the city during the Roman period. But the site’s religious significance goes back even further: the name “Banias” derives from the Greek god Pan, the half-man, half-goat deity of shepherds, nature, and wild places. In antiquity, the spring and cave were believed to be an entrance to the underworld, and the site housed a temple complex dedicated to Pan. Remnants of this sacred precinct, including rock-hewn niches, inscriptions, and temple foundations, are still visible today. Pagan worship at Banias continued well into the Byzantine era before being replaced by Christian and later Islamic influences.

Banias also holds important Christian significance. According to the New Testament (Matthew 16:13–20), it was near Caesarea Philippi that Jesus asked his disciples, “Who do you say that I am?”—a pivotal moment in Christian theology, as it is where Peter declared Jesus to be the Messiah. This moment is often interpreted as the beginning of the Church’s foundation, making Banias a pilgrimage site for some Christian visitors.

In addition to its Greco-Roman and biblical heritage, Banias was a strategic military site throughout history. During the Crusader period, a fortress known as Qala’at el-Subeibeh (later called Nimrod Fortress) was built on the cliffs above the reserve to protect the road to Damascus. Though not located within the reserve itself, the fortress is often visited in conjunction with Banias, offering sweeping views of the Hula Valley and surrounding region.

The site is carefully managed by the Israel Nature and Parks Authority, with clear signage in multiple languages and infrastructure that balances accessibility with conservation. There are shaded picnic areas, water fountains, and even wheelchair-accessible paths on the upper portions of the reserve. Visitors can choose shorter loops or longer hikes depending on interest and ability, making it ideal for families, history buffs, nature lovers, and photographers alike.