• Published 00:00 31.08.06
  • Latest update 00:00 31.08.06

As trade minister, Olmert helped friend's clients make millions

PM is suspected of furthering interests for associates of his close friend, attorney Uri Messer.

By Gidi Weitz and Uri Blau

Prime Minister Ehud Olmert is suspected of furthering interests worth millions for associates of his close friend, attorney Uri Messer, while serving as minister of of industry and trade, according to a Haaretz investigation. In all the cases examined, then trade minister Olmert participated in meetings that involved entrepreneurs and attorney Messer, on the one hand, and officials of the Ministry of Industry and Trade on the other.

Notwithstanding the regulations regarding possible conflict of interests, Olmert did not recuse himself from discussions on requests to further business interests of associates of his close friend, Messer, who is also the prime minister's personal attorney. Below are some examples:

1. In 2003 Olmert was presented with a request from businessman Ephraim Feinblum to grant preferred status to a factory he planned to set up in Dimona. The relevant officials at the Ministry of Industry and Trade - the heads of the chemical and environment sections, as well as the director of the Investment Center - expressed their opposition to the request. In practice, preferred status involves a grant of NIS 15 million in state funds. Feinblum hired attorney Messer.

In response to a Haaretz inquiry, Feinblum said that Messer "is doing a job for me. Expediting a meeting and coming with me to that meeting." Indeed, at the meeting held in Olmert's office in July 2003, attorney Messer presented those in attendance, including his friend the minister, with the arguments of the entrepreneurs. Olmert instructed the ministry officials to expedite the handling of the case, and at a later date declared in the Knesset that he was "fighting" to set up the factory.

The Ministry of Industry and Trade under Olmert undertook to pay for 75 percent of the costs of developing the land for the building of the factory. At that time Messer worked on a volunteer basis in managing Olmert's campaign organization, which backed his candidacy in the Jerusalem mayoral election in 1998, and which had still not been dissolved.

2. Another client of attorney Messer was Shemen Industries, which opposed reducing tariffs on cooking imported oils. After the Ministry of Industry and Trade announced a 3-4.5 percent drop in the tariffs, on the basis of recommendations made by ministry experts, a special meeting was held in Olmert's office later that month. Messer attended the meeting as the representative of the oil producer. As a result of that meeting, Olmert overturned the original decision and ordered the imposition of a 4 percent tariff on imported oil. Boaz Tzafrir, at the time CEO of Shemen said: "Olmert took matters into his own hands... and we succeeded in keeping the situation more or less unchanged."

3. The technology firm Asicom paid attorney Messer an advance of NIS 80,000 to bypass the decision of Shmuel Mordechai, who at the time served as director of the Investment Center at the Ministry of Industry and Trade. A senior Asicom executive said: "During the meeting we pointed out that Shmuel Mordechai did not like the approval we received... and did everything in his power to nullify it. Messer said that 'he will get his from above.' How many people are there who are above the director of the Investment Center?" The same executive noted that ultimately the company managed to solve its problems on its own, and Messer did not receive any more money.

In response Messer said that "this never happened. The managers of Asicom and I have a financial dispute, and their claims are biased and baseless."

In all the cases mentioned in the Haaretz investigation report, a bonus was promised to attorney Messer should his lobbying activities at the Ministry of Industry and Trade prove successful. In all instances, Olmert did not inform the State Comptroller's Office or the attorney general of a possible conflict of interest, as is required by the regulations of the committee for the prevention of conflicts of interest for ministers and deputy ministers. Furthermore, in none of the cases did Olmert opt to disqualify himself because of conflict of interest.

In response Messer said: "I do not recall that I asked any of the people in Olmert's office to further projects related to me."

A statement issued by Olmert's office notes that "members of the Prime Minister's Office never handled nor intervened in cases represented by Messer. We are not aware of any matter that Messer promoted at the Ministry of Industry and Trade."

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  • 25. 0 0
    Olmert should not survive as prime minister
    • Dror
    • 31.08.06
    • 13:03

    the article claiming that he can breath a sigh of relief because of Nasrallah's statement does not take into account all of Olmert's failures and shortcomings, he should not be prime minister. Average Israelis will and should organize a peaceful revolt against this government.

  • 24. 0 0
    That's the American and Israelis Way,Corruption and Greed
    • Abe
    • 31.08.06
    • 12:57

    Should there be a surprise here, how the crooks rake in millions of tax paers dollars, then they serve a prime minister or president. Then years later they are investigated and indicted,of course cleared also. That's the American and Israelis way, corruption and scandals.

  • 23. 0 0
    he may be an awful prime-minister
    • wishewasmydad
    • 31.08.06
    • 12:47

    but he is a magnificent,liberal,nurturing parent,judging by his offspring you scorn,who seem very advanced.admittedly substantial resources help.

  • 22. 0 0
  • 21. 0 0
    The accidental Prime Minister
    • Alex
    • 31.08.06
    • 12:17

    His children have gone way beyond Peace Now?..two of them support frankly seditious organizations. The Olmerts' daughter Danna is a member of Machsom Watch, a group of Israeli women who monitor checkpoints for human rights abuses and often confront Israeli soldiers on behalf of Palestinians. Their website lists dreadful behavior by Israeli soldiers, often denied by the IDF. Oh, by the way, they don?t comment on the number of terrorist acts that have been aborted by the crossing points. The Olmerts' son Shaul completed his military service, signed a petition of Yesh G'vul, a group of Israeli Defense Force soldiers who refuse to serve in the occupied territories, and now lives in New York. Yesh G?vul?s latest brochure tries to convince high school students not to join the Israeli army and offers a flat $750(US) a month for anyone who is jailed for desertion from the IDF. The Olmerts? son Ariel dodged military service altogether and is studying French literature at the Sorbonne.

  • 20. 0 0
    #15 Johnny
    • Alex
    • 31.08.06
    • 12:14

    Not only was it sold for an amount way above market value to the American billionaire Daniel Abraham, Olmert and his wife Aliza can remain living in the house for several years to come, paying below market rent. Abraham also made substantial contributions to Olmert's campain.

  • 19. 0 0
    olmert go home (the one you bought cheaply)
    • hanoch
    • 31.08.06
    • 12:13

    How come the israeli public could be sooo wrong chosing such clown as prime minister

  • 18. 0 0
    Banishment For Olmert
    • Critic
    • 31.08.06
    • 12:05

    How can other world leaders take Olmert seriously? Who wants to negotiate with an unindicted criminal? Of what possible value does Olmert have to help guide Israel's future? If banishment is a legal remedy in Israel, Olmert is a prime candidate for such punishment. And, if he were banished from Israel, he would probably go to New York and open up a personal injury law practice. He is eminently qualified to chase ambulances.

  • 17. 0 0
    and YOU wonder about Israels bad reputation in Europe? Part 2
    • J.Petek
    • 31.08.06
    • 10:31

    Not enough damage done to the Image of Israel by retired security and public personnel messing around in third world countries in dubious sorts of transactions, numerous politicans have to add further damage in all kinds of major scandales. It seems to become a national main sport to ruin the state as much as possible in any means. If you would have to mention one example for ?Banana-Republic? you would by today name Israel as a favourite. If the all enemy nations would make peace with Israel they could gain their main goal easily as you, ?ha am ha mifhar?, tend to erase your country on your own. When holding in front of your (blindfolded) eyes that it took you 2000 years of diaspora, persecution and genocide to return to your land, well, you do not much efforts in supporting the state of Israel and your single and only home.

  • 16. 0 0
    and YOU wonder about Israels bad reputation in Europe? Part 1
    • J. Petek
    • 31.08.06
    • 10:30

    I still remember those days back in my childhood when we used to collect money to donate orange threes for Israel. Yet still being idealistically naive and supporting Israel by favourising its products and assisting their distripution in europe. In the past 26 years i have experienced so much waste of public resourses, and supporting founds from european countries. I got in contact with managers closing factories in the center area just to reopen their facilites in areas like Kiriat Gat, Ariel, Dimona or the Golan Heights to recceive goverment devlopement founds, dubious start-ups and speculative investments just on purpose to get public assistance. How many flavouring companies were almost forcefully ruined by dilettantish protegees like IMI and others.

  • 15. 0 0
    The House on November 29th Street
    • Johnny Weintraub
    • 31.08.06
    • 09:18

    Several months ago, HAARETZ ran an article concerning Ehud Olmert's former residence on the 29th of November Street in Jerusalem. My recollection is that Olmert sold it to an American who does business in Israel for way over the market value of the house. This and similar issues did not seem to concern the Israeli voters during the recent elections. My conclusion is that Israelis like corrupt politicians.

  • 14. 0 0
    PM- Olmert
    • Yoel
    • 31.08.06
    • 08:47

    If these or other allagations are true the PM must come clean and if he is a man draw the proper conclusions. But I know this! Besides our own very dear Ben-Gurion no other Minister had or has a clean record, this is the result of our changing times and greed to the most part. If people would try to live simply and within their means, but who am I bluffing! Yoel

  • 13. 0 0
    Olmert's Golden Ratings
    • Reuven
    • 31.08.06
    • 08:45

    Olmert, Wins the gold for: 1. Most corrupt 2. Most incompetent 3. Greatest appeaser 4. Most foolish 5. Most ignorant 6. Most evasive 7. AND FINALLY MOST BORING!

  • 12. 0 0
    Olmert: One Scandal After Another
    • Semsem
    • 31.08.06
    • 08:29

    Something is wrong with Olmert. It's one scandal after another. First it's real estate in Jerusalem and now cronysm an conflict of interest. Yet he gets away with it.

  • 11. 0 0
    Corruption
    • Sam
    • 31.08.06
    • 08:27

    Simply put we are a simple people who will follow anyone who decries peace. The problem is with the spelling. Olmert's version of peace is actually "piece" where he and his buddies take the majority. Corruption is evidenced in all sectors, courts, media, financial. We have this naive preception that there is "nothing we can do" and "everyone does it". It has become a way of life. How else is it possible for regualar people to go into politics and come out millionairs? Corrupt leaders appoint corrupt courts to deal with corrupt special interest groups. The formula continues as there is just too much money involved. Olmert and group are an embarrassment and worse, they have not only stolen money, but they continue to steal our freedoms!!! We must act now! But the system is just too ingrained.

  • 10. 0 0
    Olmert's corruptio
    • Otto Rand
    • 31.08.06
    • 08:21

    Is this the opening of an Olmertgate? Gidi and Uri, you better be careful with your information. Remember Dan Rather? It's interesting that the right wing had only praise for him when he was the mayor of Jerusalem. Isn't it a belated hindsight?

  • 9. 0 0
    The Corruption Slowly Rises to the Suface
    • dave
    • 31.08.06
    • 07:53

    There is no doubt Olmert sold Jerusalem to the highest bidder when he was mayor. There is no doubt that all he cares about is creating an Israel "..that is a fun place to live" if you are rich. It is obvious to almost everyone that he will use his position to increase his wealth and that of his associates. Question: Why has the Israeli media covered for this guy for so long?

  • 8. 0 0
    #1
    • diana
    • 31.08.06
    • 07:43

    This is what I'm talking about!! An American Jew who wants a bigger killer than Olmerts "Lebanon Massacre" I got to give to these 'Rich Jewish Americans '[and the Israeli ones] BOTH KINDS OF PEOPLE I SPEAK OF ABOVE HAVE NEVER FOUGHT FOR EITHER COUNTRY..THEY GET OUT OF SERVING IN THE MILITARY! Gee, Mike, "CORRUPTION?" You're surprised? My God! CORRUPTION? What are you? A fifteen year old? "WAR CORRUPTS!" And murders are just "murders in the end"

  • 7. 0 0
    The Polit-Bureau is Everywhere
    • Klaudia
    • 31.08.06
    • 07:18

    Communism begat oligarchy ( concentration of power into the few, who rule the many ). Such is the power of the left. It has swept the globe. Is there a country you can think of that is not ruled in this corrupt fashion ? This comes as a result of leftist crap. Endless,shifting ,changing,ever increasing red tape and stupid rules and regulations that tie the hands of the GOOD MORAL people in the world and deliver power into the hands of guys like Olmert. Arab, Israeli, American, etc., it makes no difference.... the average Joe everywhere is a SLAVE OF THE STATE !!! THIS is the war that needs to be fought .

  • 6. 0 0
    Olmert is the most CORRUPT, CRIMINAL in Israel's history
    • amir
    • 31.08.06
    • 07:01

    There isn't one mafioso or criminal that's not connected to this spin mister bull $hit artist, Ehud Olmert

  • 5. 0 0
  • 4. 0 0
    He's a Snake Oil Salesman !!
    • Klaudia
    • 31.08.06
    • 06:16

    Olmert displays no values beyond his own pocket book. That's what being in power is all about for types like him. Never trust anyone selling the snake-oil cures of landforpeace. They themselves are as fraudulent as the policies they promote....all for the betterment of Israel , of course. Well you now have the "benefits "of his botched utterly futile war. Much like the Americans are reaping the benefits of the Iraqi war. Dead soldiers and civilians..for what ?? Both wars used just enough power to LOSE...and the enemy is laughing and re-arming...laughing and re-arming.

  • 3. 0 0
    Olmert belongs in jail,not PMO.
    • PJ
    • 31.08.06
    • 06:01

    Israel have some pride and get rid of Olmert the criminal.

  • 2. 0 0
    The stain is spreading
    • sh
    • 31.08.06
    • 05:55

  • 1. 0 0
    So much corruption
    • Mike
    • 31.08.06
    • 05:13

    How much more will the average Israeli put up with in Olmert? His actions are those of a con man selling a used car. No credibility. He needs to step down before the nation is consumed by further scandels and paralysizes the vigilance required to deal with Iran threat. He, Peretz and Halutz are not more important than the security of the nation.