Gonen Segev, who served as Israel's energy and infrastructure minister from 1992 to 1995, was allegedly providing Iranian intelligence agents with sensitive information connected to Israel's energy market and security sites, said the security agency, also known as the Shin Bet, in the statement.
He practiced medicine before entering politics, but had his license revoked after being jailed for trying to smuggle 32,000 Ecstasy tablets into Israel from the Netherlands, Israeli media reported.
Israel's internal security service has indicted one of the country's former cabinet minister on suspicion of spying for Iran. He was released in 2007.
On June 15, at the end of the interrogation, the Jerusalem District Prosecutor's Office filed an indictment against Segev in the Jerusalem District Court for the above offenses, as well as for multiple offenses of handing over information to the enemy.
Israeli police said Segev was arrested last month on his return to Israel after being refused entry to the West African state of Equatorial Guinea because of his criminal record.
The Israeli services have discovered during their investigation that Segev had been recruited by Iran and became an agent for its intelligence services.
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Israel has always been locked in a shadow war with arch-foe Iran, which supports Islamist guerrillas in the Gaza Strip and Lebanon and whose nuclear programme is widely believed to have been targeted repeatedly by Israeli saboteurs. Segev claimed that the two agents had initiated contact with him because they wanted to discuss medical equipment, and since then he allegedly acted as an agent for Iran.
In a statement Monday, the Shin Bet said that Segev handed over information to his handlers about Israel's energy sector, diplomatic operations, and specific buildings.
"From the contents of the charge sheet, whose full details are blocked, a different picture emerges", the lawyers said.
Investigators found that the connection between Segev and sources in Iran's embassy in Nigeria was first formed in 2012, and he later met twice with his handlers in Iran.
Upon arriving in Israel, Segev was detained for investigation by the ISA and the Israel Police pursuant to information which indicated that Segev was in contact with elements in Iranian intelligence and was assisting them vis-à-vis their activity against the State of Israel.