The five suspects arrested on charges of involvement in the murder of 3-year old Leah Katayev and her aunt Nadia Glibob in Lod in May 2005 were released Monday morning from custody, following a series of blunders by the Central District Police.

The two were shot to death in their car while returning from a family function.

Following the murder, police imposed a comprehensive gag order on the investigation.

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After receiving information on the case three months ago, Haaretz asked the court to remove the order. Around the same time, police saw developments in the investigation leading to arrests.

According to information received by Haaretz, the police could possibly have arrested the suspects much earlier, as the investigators had a DNA sample matching that of one of the suspects.

The sample was found inside a watch cap on the scene of the murder.

After the suspects were arrested, Police Central District commander Major General Dudi Cohen gave an interview in which he boasted of the investigation having cracked the case.

Following the arrests, another blunder was revealed involving two police "plants" which successfully smuggled drugs into the cell of one of the suspects, Khaled Abu Natila, who was recruited as a state witness for the case.

Abu Natila told the investigators all he knew of the murder case in return for clearing his name in the drug incident as well as of previous drug charges. The state witness is suspected to have used drugs in his cell even after signing the deal for his testimony.

Haaretz learned of the suspects' impending release last week, but police spokespeople denied the report and said indictments would be filed against some of the suspects in the coming week.

Ariel Katayev, Leah's father, said Monday morning he was surprised to receive an early phone call from a police investigator informing him that the suspects were being released.

"They promised me indictments," he said. "Now they're letting all of them go. What kind of police is this?" he asked.

Central District Police has said in response that "Israel Police, in cooperation with the central district prosecution, managed the Katayev murder case since the arrest of the first suspect and until the decision by the state prosecution last night, according to which no indictment will be filed against the suspects."

The statement further said that "All the discussions with the prosecution did not revolve around the quality of the evidence, which most believed to be sufficient for an indictment against at least some of the suspects, but rather around the question of the severity of the exposure of intelligence information and intelligence sources facing significant danger to their lives."

"Israel Police believes that the legal disputes should have reached the courtroom's gate," the statement added. "The state prosecution in its authority believes otherwise, bringing forth the above decision."

The suspects' attorneys, Moshe Sherman and David Yiftah said "We heard from the police of the suspects' release this morning. The police often celebrate prematurely and seek awards and support from the public, but recently the police, and specifically the central district, have misled the public."