Investigation focuses on her remarks to Arab police officers, including calling them 'collaborators.'
Gaza operation enters its 28th day after a major withdrawal of Israeli forces over the weekend.
Members of communities along the perimeter fence are demanding a heightened level of security funding once Operation Protective Edge is over.
Balad MK has been under fire for saying the kidnapping of the three Israeli teens was not terrorism.
Israel says the intensity of its air strikes has made Hamas more conciliatory; Kerry due in Cairo.
Suspect allegedly sold classified information, including names of police informants, to major crime organization.
Ronel Fisher is suspected of asking Ashdod port union boss for money to pay police, promising in return to not indict him in several affairs.
Both of the victims are men, one in his late twenties and the other aged about 20; two other people were wounded.
Leaders mourned the deaths of the three kidnapped teenagers and pledged action against Hamas.
LISTEN: Disturbing recording of call placed by Gilad Shaar to police on night of kidnapping catches his plea, 'They kidnapped me, followed by shouts and gunshots.