The scent of corruption around Prime Minister Ehud Olmert has not dissipated in the weeks following the latest round of questioning in connection with. the Bank Leumi privatization case.
Police sources said Monday that Mr. Olmert will be questioned in the next four to six weeks on allegations that he helped two of his associates during bidding for government shares in the privatization of Bank Leumi.
At the time of the sale, the Prime Minister was acting Finance Minister when he allegedly helped tailor the deal to two business associates, Australian billionaire Frank Lowy and Daniel Abrams, both of whom later pulled out of the negotiations.
Investigators are currently assembling all the existing evidence in advance of the questioning planned for the Prime Minister on the charges related to the privatization of Bank Leumi.
Mr. Lowy was recently questioned to confirm previous testimonies in connection with the case although he himself was not suspected of any wrongdoing.
After the questioning, he was told by police that he will not face further probes in future visits to Israel.
As Mayor, Bribery Allegations on Jerusalem Property
Mr. Abrams was also the buyer of the Prime Minister’s Jerusalem home on Cremieux Street for $2.7 million, far above its market value.
Mr. Olmert allegedly purchased the property during his tenure as mayor of Jerusalem for $320,000 less than its market value, according to investigative reporter Yoav Yitzhak. Then-Mayor Olmert allegedly received the discount on the property in exchange for expedited construction permits on the historical building.
A probe of the sale by State Comptroller and Ombudsman Micha Lindenstrauss, carried out in 2006, eventually led to a criminal investigation of the charges, which is still ongoing.
Mr. Olmert refused to appear at hearings on the case and delayed answering questions concerning the deal. The prime minister claimed he was not given enough time to respond to the report, despite having received a draft of the findings more than a month earlier. He later denied all the charges.
As Minister of Industry, Trade and Labor, More Probes
Mr. Olmert was also suspected of using his influence to favor a friend in bidding on a government grant to build a factory while he was Minister of Industry, Trade and Labor.
The state comptroller submitted a report last month on charges in that case, that “a conflict of interests raises concern that ethical conduct was violated.”
The report relates to the years 2001 – 2003, when Mr. Olmert headed the Ministry of Industry, Trade and Labor. The report details how the former minister allegedly used his influence to obtain for a factory called TS Silicate a 10 million shekel grant from the government although it was not eligible for it, and additional benefits worth 16 million NIS.
Mr. Olmert allegedly applied pressure to reinstate its “approved” status in 2003, so that the plant would again be eligible to receive government grants.
At the time, the factory's business interests were represented by a former partner of Mr. Olmert's, attorney Uri Messer, who headed the nonprofit group to elect Olmert as mayor of Jerusalem in 1998. Despite this, Olmert did not disqualify himself from direct involvement in the matter.
Attorney General Menachem Mazuz ordered the state comptroller to allow him (the AG) access to documents in another investigation into Mr. Olmert’s activities during the same period.
Those documents list details of political favors that Mr. Olmert allegedly granted to Likud Central Committee members during his tenure as Minister of Trade and Industry. According to a news report on Channel 10 TV, the document lists details of 115 political favors granted by Mr. Olmert during that period.
The attorney general said he wanted to see the forms on which Channel 10 TV based its report and check them for himself.
Investigators were also looking into appointments at the Israel Small and Medium Enterprises Authority by Mr. Olmert during the same period.
Cleared in Connection with Tax Authority Probe
Police have also questioned the Prime Minister in connection with a bribery case involving his personal secretary, Shula Zaken and the Tax Authority.
Ms. Zaken, who has been one of Mr. Olmert’s top aides for the past 30 years, was suspended from her post as a result of the investigation, but was not charged.
The Prime Minister was cleared on allegations of corruption in this case.