The State Attorney's office announced on Thursday that it has ordered the criminal investigation into the Carmel fire to be closed on grounds of lack of sufficient evidence to bring the two suspects to trial.
Police had suspected that two youths aged 13 and 14 from the Usafia village had deliberately caused the blaze last December, in which 44 people died.
Among the victims were 37 prison service cadets and their commanding officers, who died when their bus was engulfed by flames. The fire also caused widespread damage to land and property, totaling million of shekels. An estimated 1.5 million trees were destroyed in the fire.
A spokesman for the state attorney's office said in a statement late Thursday afternoon that the decision had been made after a thorough investigation, which had reviewed all the evidence police had gathered since the investigation was opened.