The ministry said Sunday night that businessman Dedi Graucher had passed on "hundreds of thousands of shekels" to Netanyahu, Haaretz reported.
"The state comptroller [former State Comptroller Micha Lindenstrauss] passed on this information [about Graucher] to the attorney general [Yehuda Weinstein]," the Israeli Justice Ministry said.
Two of Netanyahu’s office workers claim to have witnessed the money exchange and Weinstein ordered police to start a discreet investigation of the transfer.
The alleged money transfer was exposed during the investigation of the “Bibi-tours” affairs, in which the Israeli prime minister was accused of using money from businessmen for personal trips.
One of the allegations involves a NIS 48,000 (USD 13,000) New York hotel bill apparently paid for Netanyahu by Graucher’s corporation.
However, Graucher has denied those accusations and claimed he only gave the prime minister a credit card for a security deposit.
Netanyahu also immediately denied the allegations against him as false, claiming the attorney general’s decision to investigate him were politically motivated.
The Israeli police have so far concluded that there is not enough evidence to warrant a criminal probe.