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Last update - 21:58 28/05/2008 PM's ex-bureau chief denies offering to testify in Olmert corruption case By Haaretz Service Tags: Israel, Morris Talansky  Prime Minister Ehud Olmert's former bureau chief, Shula Zaken, denied reports Wednesday that she had offered to testify in the corruption investigation currently underway against Olmert in exchange for dismissal of charges against her. Olmert is suspected of having illegally received hundreds of the thousands of dollars in cash from American businessman and fund raiser Morris Talansky over the span of 15 years. Earlier Wednesday, Channel 2 reported that Zaken's attorney, Mika Fettman, had submitted a proposal to the prosecution suggesting that his client, a close personal friend to Olmert, offer her testimony, and in exchange, the prosecution will close the pending corruption investigation against her. Advertisement Zaken was a suspect in a large-scale corruption scandal at the Tax Authority last year, which included claims of bribe-taking in exchange for tax breaks to businessmen and political figures. Zaken has thus far maintained her right to silence and refrained from cooperating with police investigators during the course of the investigation. According to Channel 2, Fettman suggested that the Tax Authority charges pending against Zaken be dismissed, and in return, Zaken will reveal what she knows. The deal would also include a promise by the prosecution to keep Zaken out of any possible future indictment in the Talansky case. The deal suggested by Fettman stipulates that 1. Zaken would not be asked to outline the content of her testimony prior to the agreement on the conditions, and 2. she would not turn state's evidence, the report went on to say. The police and the prosecution have yet to respond to the proposal. Last week, a gag order was lifted on Zaken's date book documenting Olmert's tenure as Industry Trade and Labor Minister. In the diary, amounts of money were recorded next to the names of Olmert's close friend and business associate Uri Messer and Talansky. It was these memos that originally prompted the police to launch the probe against Olmert. The police say the documents point to the possible collusion of Zaken in the bribery scandal. Haaretz has had access for some time to these key documents, but they were under a gag order until last Wednesday. Police sources say the fraud squad seized several of these documents, described only as memorandums, several weeks ago from Zaken's computer in the Industry, Trade and Labor Ministry. Zaken was Olmert's bureau chief when he was minister there a few years ago. "Messer has 274,000 - 1.6.2005," "30.6.05 I gave Uri 23,950 from Talansky. Talansky owes 6,500, 12.08. I gave Uri 7,500 from Talansky," Zaken wrote. This memorandum raises suspicions that Zaken, Olmert's closest confidant over the past 25 years, served as a liaison between Talansky and Messer. Talansky told police that he had given cash to Olmert and Zaken. Messer told police that from time to time, he gave Olmert money from Messer's safe, at his request. Police believe the money in Messer's safe came from Talansky. Another memorandum Zaken wrote in April 2006, a month after Olmert was elected prime minister, says: "Ask Uri Messer - new year. Last year I received 30." Immediately after the gag order was lifted Wednesday, Olmert held a news conference and said the funds Talansky had raised overseas were intended for his numerous campaigns. No election campaigns were held in September 2005, when the first document was written, or on the dates Zaken listed. Perhaps Olmert's explanation is that the sums were for covering deficits. However, the prosecution and police suspect that the money Olmert received from Talansky was bribe money. Zaken's documents were passed on by Industry, Trade and Employment Ministry officials to the State Comptroller at the beginning of 2007. They were submitted as part of the comptroller's probe into Olmert's involvement in funneling tens of millions of shekels to the Dimona Silica Industries, which was represented by his good friend and former partner Messer. The comptroller wrote in his report summary in April 2007 that Olmert's acts raise the suspicion of criminal doings, and recommended that the attorney general open a criminal inquiry against him. Attorney General Menachem Mazuz delayed his decision on whether to open the probe for months, even though Zaken's documents were already in the prosecution's hands. He finally ordered the probe in October 2007. Mazuz issued a statement saying that he decided to open the probe following Haaretz Magazine's expose about the give-and-take relations between Olmert and Messer. Earlier this week, Channel 2's Fact program said that in the summer of 2006, immediately after Haaretz's expose of Olmert's involvement in advancing Messer's clients' interests, Messer took the money out of his office safe and returned it to Zaken. The prosecution held on to Zaken's memorandums for months without giving them to the police investigation team. Only this March, following the intervention of Haaretz and Yisrael Hayom, did the police obtain the memorandums from Zaken's computer in the Industry, Trade and Employment Ministry and begin to examine the new suspicions. The documents and other material gathered by the detectives were shown to the main suspects - Zaken, Talansky and Messer. Talansky and Messer's testimonies were reportedly very harmful to Olmert. Zaken chose to exercise the right to remain silent. Related articles: Barak tells Olmert: Quit or face elections Olmert probe stirs resignation calls; Labor: We'll remain in gov't Corruption probe poll: 70% of Israelis don't believe Olmert Bookmark to del.icio.us   Scuba SMS Ultrasonic sound wave technology revolutionizes underwater communication. 'Hip-hop violinist' Israeli violinist participates in New York event, celebrating Israel's 60th anniversary.   1.   Sounds fair 22:10  |  AliciaYasmeen 28/05/08   2.   Olmert today is like `a Dead Man Walking` 22:10  |  The Threadmill 28/05/08   3.   What is the price of justice? 22:19  |  H. H. MENDELSOHN 28/05/08   4.   What is the price of justice? 22:21  |  H. H. MENDELSOHN 28/05/08   5.   Sympathy all with Talansky... 22:35  |  Esther 28/05/08   6.   Famous "I" quotes revisited. 22:47  |  common sense 28/05/08   7.   #5 ESTHER, I find surprising that Talansky had no private lawyer 23:07  |  AliciaYasmeen 28/05/08   8.   A case of `dirty tricks`....... 23:09  |  Natasha 28/05/08   9.   Barak or not - an indictment is forthcoming ! 23:09  |  redmike 28/05/08   10.   Zaken wants immunity from all charges, all crimes. Won`t happen. 23:50  |  Raymond in DC 28/05/08

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