Police announced Monday they have recommended that State Prosecutor Oren Shendar file indictments against Prime Minister Ehud Olmert’s former bureau chief Shula Zaken and several associates on corruption charges.
Ms. Zaken, who has been suspended from her job for six months, was held on house arrest when the allegations of corruption first came to light in February. Her passport was confiscated and she was forced to put up a NIS 50,000 bond at that time.
Jerusalem City Councilman Yoram Karashi, Ms. Zaken’s brother and a member of the Likud Central Committee, will be indicted on similar charges.
Tax Authority head Jackie Matzah is also facing indictment, along with a private businessman.
All four are faced with allegations of corruption, breach of public trust and fraud on suspicion of arranging the promotion of Mr. Matza to head the Tax Authority and use the position to help business colleagues.
The Prime Minister has not been charged in this scandal, but he has suffered from increasing suspicions of corruption because of his association with the Tax Authority chief.
Mr. Olmert does face investigation in several cases, including:
- using his influence as Finance Minister to help two friends purchase government shares during the privatization of Bank Leumi (both eventually withdrew their bids and neither is under investigation)
- using his influence as Industry, Trade and Labor Minister to help a friend receive millions of shekels as a government grant for his factory even though the business had lost its eligibility
- accepting a bribe when he was mayor of Jerusalem, in the form of a significantly discounted purchase price for his Jerusalem home, in exchange for zoning changes