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 The BBC's Alix Kroeger"The accusations against Mr Netanyahu could hardly be more serious"  real 28k  The BBC's Paul Adams reports"Binyamin Netanyahu finally faces the real possibility of an indictment"  real 28k |
If Israel's attorney-general accepts the recommendation, Mr Netanyahu could be charged with accepting a bribe, fraud and breach of trust by a public servant.
His wife could face charges that include theft.
"This was a tendentious investigation whose outcome was known ahead of time"  |
Binyamin Netanyahu
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The gifts reportedly included candlesticks, silverware, candelabra, carpets, pictures, scarves and a gold letter opener that was a gift from US Vice President Al Gore.
They are also accused of charging the government for services of a contractor who did private work for them.
The contractor, Avner Amedi, turned state's witness and gave investigators details of nine years of service to Mr Netanyahu.
 Police searched Mr Netanyahu's home and office
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In addition, Mr Amedi sent a $110,000 bill to the Prime Minister's Office for services that included private work he had performed for the Netanyahu family, police said.
'Baseless allegations'
Mr Netanyahu's office said in a statement that all the allegations were baseless, and accused the police of acting in bad faith.
"This was a tendentious investigation whose outcome was known ahead of time," the statement read.
 Sara Netanyahu: widely disliked by Israeli media
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The former prime minister has not been specific about a possible political comeback, but he has reportedly been asked by those opposing an Israeli withdrawal from the Golan Heights to lead their campaign.
Despite his crushing defeat at the hands of Prime Minister Ehud Barak, Mr Netanyahu has retained a loyal following and, if he decided to return to politics, could still claim a leading role in the opposition Likud.
During the investigations, Israeli police searched Mr Netanyahu's home and office.
Scandals
Several other senior Israeli politicians are currently under investigation or involved in scandals.
- Prime Minister Ehud Barak: police are currently probing his campaign financing. They say Mr Barak's party, One Israel, circumvented the spending limits to election donations in his successful campaign against Mr Netanyahu.
- President Ezer Weizman: is under investigation for accepting large sums of money from a French businessman in the 80's
- Transport Minister Yitzhak Mordechai: suspected of sexually harassing a female staff in his office
- Rabbi Ovadia Yosef - the spiritual head of the ultra-Orthodox Shas Party: under investigation on suspicion of incitement to violence against a political adversary.
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