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Prime Minister Ehud Olmert. (Archives)
Last update - 10:11 10/01/2007
Olmert expected to face criminal investigation in Bank Leumi sale
By Yuval Yoaz and Aluf Benn, Haaretz Correspondents

The Justice Ministry is expected to announce the opening of a criminal investigation against Prime Minister Ehud Olmert next week. The probe will focus on the state's sale of a controlling interest in Bank Leumi.

The ministry declined to confirm this, or a separate media report that it has decided to investigate Olmert over three different affairs: the Leumi sale, various benefits conferred on attorney Uri Messer, and political appointments at the Industry Ministry's Small Business Authority during his tenure there as minister.

Information received by Haaretz indicates that the ministry plans criminal investigations into the first two of these affairs.

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In a statement issued Tuesday, a ministry spokesman said: "We wish to make it clear that we have no intention of commenting on any report, news item or speculation regarding affairs involving the prime minister. When the decision-making process on these sensitive and complex matters, which is still ongoing, has ended, an orderly announcement will be made to the public.

Channel 10 television reported Tuesday night that the police intend to open more than one criminal investigation against Olmert; that all the probes will be handled by the same police unit; and that an official announcement would be made upon Olmert's return from China next week.

The Justice Ministry's decision-making process is complex, not only because of the cases themselves, but because of various subsidiary questions that must be addressed. For instance, should Attorney General Menachem Mazuz recuse himself from the Leumi decision, since his sister, Yemima Mazuz, is the Finance Ministry's legal adviser and was therefore involved in the sale? If so, can he legally delegate his powers to another ministry official, given that the law explicitly states that only the attorney general can order a criminal investigation concerning the prime minister? And if so, who should make the decision - one of the deputy attorneys general or State Prosecutor Eran Shendar?

Suspicions that Olmert, in his former role as finance minister, was improperly involved in the Leumi sale first came to light in a report by State Comptroller Micha Lindenstrauss. The main evidence against him is apparently the testimony of Accountant General Yaron Zelekha.

As first reported in Haaretz, an opinion prepared by attorney Michael Karshan of the Justice Ministry recommended a criminal investigation against Olmert in the Leumi affair, on suspicion of fraud, breach of trust and other crimes. However, Shendar then decided that more information was needed, and asked the police to carry out certain inquiries as part of the process of deciding whether to open a formal investigation.

The suspicions involving Messer, Olmert's former law partner, were first published in Haaretz Magazine. That report stated that Olmert, while serving as industry minister, personally considered most requests by Messer's clients, and approved benefits worth millions for them. Olmert allegedly met with Messer's clients and with Messer himself to discuss their requests, and also discussed their requests with the relevant Industry Ministry staff. In no case did Olmert report to the state comptroller or the attorney general about a possible conflict of interest, nor did he ever recuse himself from involvement in such requests.

The third affair, of political appointments in the Small Business Authority, was also initially exposed by Lindenstrauss, but after his report was published, the comptroller obtained additional evidence, which he has passed on to Mazuz. The comptroller's office said that this new evidence raises "serious suspicions" that the appointments were illegal.

Meanwhile, aides accompanying the prime minister on his trip to China this week charged Tuesday that the civil service is liable to be paralyzed by fear of investigations. No civil servant will dare to make decisions, they said, lest he be suspected of granting benefits or preferential treatment to associates.

The plethora of probes now taking place in Israel was the main topic of conversation among Olmert's entourage, overshadowing events in China itself. Olmert's office manager, Shula Zaken, is a key suspect in the Tax Authority scandal, and one of his top aides, Oved Yehezkel, has been questioned by the police as a witness in the affair.

Unlike his predecessors in the job, Olmert did not take a delegation of businessmen with him to China, and Tuesday, he ate alone with a group of Chinese businessmen. His aides attributed this, too, to the climate of fear of investigations.

"Had we brought businessmen, we would have had to give explanations to the state comptroller: Why this one and not that one?" explained one aide. "The comptroller would say that he questioned us and then accuse us of lying during the interrogation. What do we need this for?"

The aides noted that French President Jacques Chirac, in contrast, flies all over the world promoting French business, even when the flights are paid for by the businesses themselves.

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  1.   Corruption 22:04  |  Boycott 09/01/07
  2.   Do we have enough investigators? 22:04  |  NP 09/01/07
  3.   Olmert`s deals 22:11  |  Esther 09/01/07
  4.   It looks like a tainted "Painting" 22:12  |  BenAmuzaglo 09/01/07
  5.   APPARENTLY, IT`S GOING TO BE 22:13  |  Robert 09/01/07
  6.   Corruption, corruption, corruption... 22:31  |  bat yam 09/01/07
  7.   Do not post 22:44  |  From the Moon 09/01/07
  8.   Re BenAmuzaglo #4 22:55  |  Esther 09/01/07
  9.   Corruption on a grand level 22:56  |  Norman 09/01/07
  10.   Olmert investigated by Mazuz-he can`t be all rotten then 22:57  |  Absolute Sweden 09/01/07
  11.   the PM is uniting the country... 23:04  |  Ernst 09/01/07
  12.   A nook for a crook 23:13  |  Nora 09/01/07
  13.   IT IS UP TO US TO CHANGE THE FACE OF THIS GOV`T... 23:26  |  bat yam 09/01/07
  14.   if he were Charedi he`d be in prison 23:41  |  sevenfatcow 09/01/07
  15.   Freedom of Speech 23:41  |  Sam Weinstein 09/01/07
  16.   KADIMA TO JAIL OR WILL THE PROSECUTION FAIL?? 23:44  |  paul harris 09/01/07
  17.   It says nothing good about us 00:23  |  sh 10/01/07
  18.   ANOTHER WITCH HUNT 00:51  |  Stephen 10/01/07
  19.   El mOrtE 01:22  |  bo 10/01/07
  20.   To Stephen re: witch hunt 02:49  |  David James Vickery 10/01/07
  21.   hey should i bring mycamera cell phone 02:57  |  tea man 10/01/07
  22.   Occupation corrupts 02:57  |  HonestIsraeli 10/01/07
  23.   US help,your puppet is going down,bye bye for your plans 04:08  |  Joseph E . 10/01/07
  24.   # 10 Absolute Sweden 04:33  |  Joseph E . 10/01/07
  25.   #19, Stephen 04:36  |  Hannah 10/01/07
  26.   I am going to Run for PM 04:45  |  Mikhail 10/01/07
  27.   house cleaning 04:56  |  avrum 10/01/07
  28.   We get the drek we deserve 07:09  |  Jason 10/01/07
  29.   Criminal Probe 08:54  |  Frank 10/01/07
  30.   The cow-milking PM 09:42  |  Yoel 10/01/07
  31.   #29, Jason 10:39  |  Hannah 10/01/07
  32.   #2 Probably not 10:51  |  sh 10/01/07
  33.   "INVESTIGATE" now the new Israeli game. 11:30  |  Maurice 10/01/07
  34.   I prefer a slightly corrupt man over an ideologue... 12:34  |  Ovadiah ben Avraham 10/01/07
  35.   2 reasons to Congratulate Israel 13:48  |  Maher 10/01/07
  36.   Olmert 14:48  |  Josh 10/01/07
  37.   WIPED OUT AT THE STROKE OF A PEN 15:24  |  paul harris 10/01/07
  38.   Harassing the PM 17:34  |  Brod 10/01/07
  39.   Give Ehud a break! 18:17  |  Desmond 10/01/07
  40.   A Nation In Need Of Analysis 19:17  |  Sigmund Freud 10/01/07
  41.   Perhaps this is the only way 19:29  |  Jonathan S 10/01/07
  42.   sloppy with names 19:32  |  uzi 10/01/07
  43.   Bagatz has clearly decided to dispose of their Olmert puppet 20:39  |  Ronny 10/01/07
  44.   #40 Sigmund Freud puts it really in a nutshell! 02:28  |  Smadar 11/01/07
  45.   #24 Joseph E. - thought of you today.... 03:06  |  Smadar 11/01/07
  46.   # 45 Smadar @ Toronto / Canada 10:39  |  Joseph E . 11/01/07
  47.   #45 Joseph E. ... looks like you know where to hang out 05:44  |  Smadar 12/01/07
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