Israel's Netanyahu withdraws nomination of candidate for intelligence agency

JERUSALEM (Reuters) - Israeli Prime Minister Benjamin Netanyahu has withdrawn his nomination of former navy chief Eli Sharvit to lead the domestic intelligence agency Shin Bet only a day after making it, a statement from his office said on Tuesday.

Netanyahu thanked Sharvit for accepting the nomination "but informed him that after further thought, he intends to examine other candidates", it said, giving no further reasons for the decision and naming no other candidate.

Israeli media reports said that Sharvit had taken part in the huge street protests that shook Israel in 2023 over Netanyahu's drive to restrict the power of the Supreme Court and overhaul the judiciary.

In a statement, Sharvit said he had agreed to take on the role of leading Shin Bet and he had full confidence in its capacity to meet the "complex challenges that have arisen in these days".

Netanyahu's nomination of Sharvit came in the middle of a bitter dispute over the current head of the Shin Bet intelligence service, Ronen Bar.

The move to fire Bar, who has presided over an investigation into allegations of financial ties between Qatar and a number of aides in Netanyahu's office, has been held up by a temporary injunction from the Supreme Court, which will consider the case next week.

Netanyahu's move to dismiss Bar, a member of the Israeli team negotiating a return of hostages from Gaza, has provoked large demonstrations by protesters who accuse the prime minister of undermining key state institutions for political ends.

Netanyahu has dismissed the so-called "Qatargate" inquiry by police and Shin Bet as a politically motivated witch-hunt. He has said he lost confidence in Bar and blamed Shin Bet for intelligence failures led to the October 7, 2023 Hamas attack on Israel which precipitated the Gaza war.

(Reporting by James Mackenzie; editing by Mark Heinrich)