Netanyahu grilled over graft charges

Police grilled Israeli Prime Minister Benjamin Netanyahu for three hours on Monday evening as part of a graft probe that has shaken the country's politics.

Investigators quizzed Netanyahu at his residence in central Jerusalem under caution "on suspicion of receiving benefits", a police spokesman said afterwards, adding there were no further details to give.

Ahead of the questioning, Netanyahu denied any wrongdoing and told his political opponents to put any "celebrations" on hold.

Police had been expected to question Netanyahu over whether he illegally accepted gifts from wealthy supporters.

The long-running graft inquiry has looked into whether Israeli and foreign businessmen have offered gifts worth tens of thousands of dollars as well as another unspecified issue, according to media reports.

Attorney General Avichai Mandelblit has reportedly decided to upgrade the inquiry to a criminal probe, although he has yet to confirm this. Police have carried out the probe in secret over some eight months and recently made an important breakthrough, reports said. About 50 witnesses are said to have been questioned.

Netanyahu has also come under scrutiny over an alleged conflict of interest in the purchase of submarines from a German firm.

Media reports have alleged a conflict of interest over the role played by the Netanyahu family lawyer, David Shimron, who also acts for the Israeli agent of Germany's ThyssenKrupp.

Beyond those issues, Israel's state comptroller released a critical report in May about Netanyahu's foreign trips, some with his wife and children, between 2003 and 2005 .