The businessman had said during the previous three days of testimony that he was a close friend of Netanyahu, and had given the prime minister's family cigars, shirts, and champagne.
"No one could have guessed that the prime minister would not resign," former Israel Police chief Roni Alsheich told Army Radio.
A-G Gali Baharav-Miara said that "no circumstance had changed," and that the prosecution would continue with Netanyahu's case.
Lapid is taking the stand for Case 1000, in which Netanyahu is alleged to have received expensive gifts from Israeli businessman Arnon Milchan.
The Prime minister's attorneys met with the A-G last month in an attempt to carry out a mediation process meant to lead to a plea agreement.
Likud argued that the A-G was taking the span of the conflict of interest agreement further than her predecessor had intended.
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