The prize money came from the PMO not the PM. There is a difference between the Prime Minister and the Prime Minister's Office. The PMO is immortal, it is separate and it demands the respect of all those who are governed by it regardless of who's administering it. It is a symbol of governance in Israel. Like the Knesset and the Supreme Court and other institutions of Govt. Therefore Grossman, being the intelligent man was being patriotic in accepting the honour of recieving a comendation from such a distinguished Office of State. Had he refused it, it wouldve been equivelant to slap in the face of Israel itself. And anyhow, there is no point in refusing the money or the honour because of such a low life like Olmert, he did well... he had his cake and ate it too!
Clashes in Nabi Saleh leave soldier, officer and Palestinian lightly wounded (Haaretz)
from the article: Author David Grossman snubs Olmert upon receiving prize