In July 2010, after a four-year trial for election bribery, fraud and breach of trust, Hanegbi was cleared of all charges by a Jerusalem court.

The case stems from Hanegbi's denial that he was behind an ad boosting his appointments of Likud party's political activists to positions in the Ministry of the Environmental Protection.

The judges verdict cleared Hanegbi of any criminal wrongdoing, accepting the defense's argument that such appointments were not illegal prior to 2004, and that this was the common practice among all cabinet members in all the previous governments since Israel's independence.

Former Knesset Speaker Avraham Burg who opposes Hanegbi politically, has called for the firing of the prosecutor by the Attorney General.

Hanegbi therefore suspended himself from the Knesset and from his position as Chairman of the Foreign Affairs and Defence Committee, pending his legal appeal.

Hanegbi explained that he believed Kadima's decision to quit the unity government was irresponsible, and motivated by short-term political goals.

[7] On 30 May 2016 Hanegbi was appointed Minister without portfolio in the Fourth Netanyahu Cabinet, dealing with issues concerning defense and foreign affairs.

On 2 June 2016 Hanegbi denied allegations that he intentionally wrote a report on Operation Protective Edge that cleared the Israeli government of all wrongdoing.