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Ehud Olmert pledges to quit if charged over Talansky affair
By Jonathan Lis and Tomer Zarchin

In his first chance to address the latest corruption suspicions against him, Prime Minister Ehud Olmert declared last night that he intends to resign if he is indicted.

But Olmert also denied taking any bribes and said that all funds received from an American businessman were transferred to a former close associate, attorney Uri Messer. Olmert said he had "full confidence that Messer handled the money professionally and according to the law."
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Last night the gag order imposed on the case since last Thursday was partially lifted and information on the police investigation and suspicions against Olmert were revealed in Israel for the first time. Earlier this week, New York newspapers published details on the case and the alleged role of an American businessman.

The prime minister is suspected of illegally receiving hundreds of thousands dollars from an American businessman and fundraiser, Morris Moshe Talansky, during tenures as Jerusalem mayor and as minister of industry and trade in Ariel Sharon's government.

Last night, Olmert acknowledged that he received funds from Talansky, whom he said he met two decades ago, as part of campaign contributions when he twice ran for mayor of Jerusalem.

The prime minister insisted that he did not take any of the money that Talansky raised on behalf of his political campaigns in 1999 and 2002 for his own personal use and rejected any allegations that he accepted bribes.

The investigators are also examining whether Olmert received funds, which they suspect were bribes, from other sources during the years preceding his tenure as a minister in the Sharon government.

The investigators' focus on the period Olmert served in the Sharon government contradicts Olmert's reference last night to his tenure as prime minister.

The investigators also suspect that the transfer of funds was carried out over a long period of time and included large sums.

According to the investigation material available to date, Olmert is suspected of meeting Talansky on his own, in Israel and abroad, while he served as minister of industry and trade, and allegedly received the money.

Police are investigating whether funds were transferred to Olmert also through go-betweens, including his former bureau chief Shula Zaken, and his confidant, attorney Uri Messer.

The investigators are still not sure for now whether funds were taken by Olmert for his private use or whether they were used for other purposes. However, law enforcement sources made it clear yesterday that it is now up to Olmert to prove the suspicions against him are wrong.

According to these sources, Olmert failed to dispel the suspicions against him during the interview investigators had with him last Friday.

"No one knows precisely where the money that was transferred to Olmert went," a source said. "We assume that the money was used for personal purposes and not for political purposes."

Olmert answered all the investigators' questions during the interview and denied breaking any laws in receiving the funds.

Haaretz has learned that Olmert told the investigators to ask Zaken about the funds, saying that she could offer details about his meetings with Talansky. Olmert added that he does not remember the hundreds of meetings he had held with contributors from all over the world over the years.

Investigators suspect that Zaken is the one who coordinated the meetings with Talansky, and may have also been party to some of the money transfers.

However, Zaken, who was interviewed by police four times last week, retained her right to remain silent and gave no details to the investigators.

Talansky, who had visited Israel for Passover, was questioned by the Fraud Squad in their Bat Yam offices earlier last week, and offered a detailed testimony which bolstered suspicions against Olmert and Zaken.
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