We've heard George W. Bush say "America doesn't torture" when he knew it was a lie. We heard James Clapper tell Congress that Americans weren't being spied on when he knew it was a lie. Richard Nixon said "I am not a crook!" but felt free to employ them. For an official to deny something is simply standard practice, in America, in Israel, in any place and at any time.
Firebomb thrown during demonstration in northern Israeli town of Umm al Fahm (Haaretz)
from the article: Newsweek reporter stands by Israeli spying allegation: Facts are facts