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Last update - 00:00 11/10/2007

Police question PM in Leumi probe for second time in three days

By Jonathan Lis, Haaretz Correspondent

Police investigators on Thursday questioned Prime Minister Ehud Olmert for the second time in three days over suspicions that he interfered in the privatization of Bank Leumi to benefit a friend.

The session lasted for four hours and took place at Olmert's Jerusalem residence. A team of detectives from the National Fraud Investigation Unit, headed by unit chief Shlomi Ayalon, arrived at the Prime Minister's Residence at about 9 A.M. to pick up the questioning where it left off after Tuesday's five-hour session.

Police spokesman Micky Rosenfeld said police were looking into a possible breach of trust.

"There is no date for further questioning and the evidence gathered will be passed on to the State Prosecutor's Office," Rosenfeld said. He gave no further details, citing the sensitivity of the issue

Olmert is being questioned about his relationship with Australian businessman Frank Lowy, who was an early contender for the state sale of Bank Leumi, although he later withdrew from the bidding. Olmert was finance minister in 2005, when the tender was issued. Olmert's testimony is expected to effectively wrap up the investigation against him.

The investigators are due to issue their recommendations regarding an indictment against the prime minister within a few weeks.

The investigation revolves around the question of whether Lowy's associates gave Olmert instructions from Lowy regarding the terms of the tender and whether Olmert acted on any such instructions.

Related articles:

  • AG opposes moves to postpone criminal probes against Olmert
  • Olmert faces criminal investigation over Bank Leumi sale affair




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