Outgoing Prime Minister Ehud Olmert and Foreign Minister Tzipi Livni, head of Kadima, are headed for a showdown over his intention to remain in office and her demand that he quit in light of an impending indictment.
Olmert's aides are furious at Attorney General Menachem Mazuz for staging what they said was an "ambush" in a Wednesday night announcement that he is "considering" indicting the Prime Minister for fraud and breach of trust.
Mazuz's announcement gives Olmert and his lawyers the opportunity for a pre-trial hearing, similar to the procedure used in the investigation of former President Moshe Katzav. Olmert's aides said that he has no intention of suspending himself.
"Olmert has already stepped down as prime minister. Under these circumstances it is clear that there is no significance, legal or otherwise, to him suspending himself," said his spokesman Amir Dan.
Foreign Minister Livni, whose Kadima party is lagging behind the Likud party in pre-election polls, plans to talk with the party caucus in Petach Tikva on Thursday and is expected to call on him to step down.
Mazuz said that the outgoing prime minister is likely to be charged with offenses in the RishonTours double billing scandal, which allegedly enabled him to pocket $85,000 in cash.
If convicted, he faces seven years in jail for tax evasion, another five years for receiving benefits illegally and an additional several years for falsifying documents. The charges involve more than a dozen personal trips.