THE Israeli Prime Minister, Mr Benjamin Netanyahu, fighting for his political life after being fingered by police in a corruption scandal, yesterday rejected demands that he resign or even temporarily suspend himself. He vowed that he and his government would remain in power until the year 2000 and beyond".
The political earthquake over the "Bar On Affair" in which police are recommending the indictment of Mr Netanyahu and three of his top allies, is dominating all other business in Israel - including the concurrent American effort to restart peace talks. The visiting US envoy, Mr Dennis Ross, held talks with Mr Netanyahu a day after the Israeli Foreign Minister, Mr David Levy, and Palestinian President, Mr Yasser Arafat, met in Malta.
But Mr Netanyahu's aides acknowledged there could be little time devoted to peace efforts in the next few days, while the Prime Minister waits to see whether the state prosecution authorities will adopt the police recommendations and charge Mr Netanyahu with fraud and breach of trust.
Though opposition leaders yesterday called on Mr Netanyahu to step down, and began talking of early elections, and one legislator petitioned the Supreme Court for him to be forced to take at least a leave of absence until the affair was resolved, the Prime Minister was in defiant mood at a pre Passover festive gathering in Tel Aviv for activists from his Likud party.
Suggesting that his legal difficulties really stemmed from left wing opposition to his hardline policies, lie declared: "This government isn't going anywhere. We are staying right where the people and history have put us.
To warm applause from supporters, he pledged: "The truth will out," and "We'll overcome all the obstacles."
The State Attorney, Ms Edna Arbel - who, along with the Attorney General, Mr Elyakim Rubinstein, will determine whether Mr Netanyahu must face charges said she hoped to complete the work "in two days". If Mr Netanyahu is indicted, he will come under enormous pressure to resign, but would not be legally required to do so.
He could even try to remain in office if convicted. But election law offers three ways to remove him: with a no confidence vote of 61 Knesset members that would trigger new general elections with a vote of 80 Knesset members that would prompt new elections only for prime minister and with a vote to impeach, again by 61 Knesset members, after a conviction.
With so many potential scenarios, it is hard to gauge how Mr Netanyahu may choose to proceed, or how much his coalition colleagues will try to force his hand. Many, if not most, of the ministers at his cabinet table carry grudges against Mr Netanyahu, and they may seek to persuade him to suspend himself by warning him of the potential damage to his government's cause and good name as he fights the allegations.