PM to face criminal investigation over Bank Leumi sale affair
Aides say Olmert sees no fault in his involvement in sale; MK Ayalon: Labor should prepare for fresh elections.
By Yuval YoazState Prosecutor Eran Shendar has ordered the police to begin a criminal investigation into Prime Minister Ehud Olmert, on suspicion of having tried, in his former role as finance minister, to influence a tender for the sale of a controlling stake in Bank Leumi.
In response, the Prime Minister's Office urged the police to finish the probe as soon as possible.
Normally, only the attorney general can order the investigation of a prime minister. However, Attorney General Menachem Mazuz recused himself from the case because his sister, Yemima Mazuz, was involved in the Leumi sale as the Finance Ministry's legal adviser.
The Justice Ministry has not yet decided whether to open probes into two other allegations against Olmert, both involving his tenure as industry minister: that he gave unwarranted benefits to clients of his former law partner, Uri Messer, and made political appointments at the Small Business Authority. Mazuz will decide on these two cases.
In the Leumi case, Olmert is suspected of having tried to throw the tender to his friend, Australian real estate magnate Frank Lowy. The tender for the bank's privatization was published in November 2005, four months after Olmert replaced Benjamin Netanyahu at the treasury.
During that time, Olmert demanded various changes to the tender, which he explained were aimed at encouraging strategic, rather than merely financial, investors to bid. However, law enforcement officials suspect that the changes were meant to help Lowy.
In the end, however, Lowy withdrew from the tender shortly before it closed.
The suspicions against Olmert first emerged during an audit of the sale by State Comptroller Micha Lindenstrauss. The comptroller heard testimony from Accountant General Yaron Zelekha and other officials in Zelekha's office. After finishing his audit, Lindenstrauss transferred the material to Mazuz, who then asked the police to conduct "preliminary inquiries" into the matter.
According to Shendar, this included questioning some additional people involved in the sale, aside from those who spoke with Lindenstrauss. Based on these findings, Shendar decided Tuesday to launch a criminal probe.
"The results of the preliminary inquiries led to the conclusion that the evidentiary infrastructure justified opening a criminal investigation," the Justice Ministry said in a statement.
One bit of evidence reportedly gathered by the police is a document listing changes in the terms of the tender, which Lowy allegedly read aloud at a meeting with Leumi officials. Olmert allegedly used this same document while demanding that treasury officials change the tender.
Police Commissioner Moshe Karadi announced Tuesday that the probe would be handled by the national fraud squad, which also conducted the preliminary inquiries. The fraud squad is also currently handling the probe into alleged influence-peddling at the Tax Authority, in which a key suspect is Olmert's office manager, Shula Zaken.
One of Olmert's aides said last night that his office "was not surprised by the decision" to open the probe, "in light of the contemptible leak a week ago, while the prime minister was in China.
"The prime minister is certain that his behavior in the affair was unexceptionable," the aide continued. "He acted impeccably, and if it were necessary to do it again, he would act exactly the same way. The [sale] process received the approval of Bank of Israel Governor Stanley Fischer and Finance Ministry legal adviser Yemima Mazuz. We are certain that nothing will come of this, just as nothing came of the investigations against previous prime ministers."
According to a senior Justice Ministry official, Olmert is suspected of breach of trust for having acted out of a conflict of interests. The official said the decision to open a probe was based in part on the Supreme Court's ruling in the case of Shimon Sheves, a former director general of the Prime Minister's Office: "When a senior public servant has a conflict of interests, he broadcasts to those under him, and to the entire public, the failure of the public system, the breaking of governmental rules. When this conflict of interests includes a financial aspect, the public servant airs the connection between money and government."
Roni Singer-Heruti contributed to this report.
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Prime Minister Ehud Olmert visiting Ephraim crossing, near the West Bank town of Tul Karm, on Tuesday. (Reuters) |
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I wonder about the timing of Halutz resignation. Perhaps it was done now to distract the public from the bigger story that Olmert will finally be brought up on criminal charges.
Criminal investigation of Haaretz and left-wing media is necessary, for 1) Collaboration with criminal regimes of Sharon and Olmert. 2) Brainwashing and inciting the Israeli public against the "settlers" to perpetrate pogroms and expulsion. 3) Collaboration with Sharon and Kadima in demonizing "settlers" in order to commit crime against humanity by expelling 10,000 Jews from their homes, in a criminal process called "disengagement". 4) For perpetuating the myth that Israel has no right to exist on the "occupied" territories. 5) For using deceptive journalism, twisted logic, and incitement against other Jews in reporting. 6) For being the willing mousepiece for Israel's enemies. 7) For under-reporting, whitewhashing,or concealing crimes agains Jews by the Arabs. 8) For refusing to call terrorists by their name: "TERRORISTS". 9) For calling terrorists "militants" 10) For calling muslim imams "mosque officials" 11) For calling terrorist murderers "extemists"
Olmert's idea of leadership is grand gesture. If it looks right, it is right, no matter what's underneath the glossy exterior. A little tweak here, another there, what's the problem? When the swelling from his recent plastic surgery procedure goes down his eyes will look just like Berlusconi's.
Light at the end of the tunnel. New elections now.
There is hard evidence and a chance to get rid of Olmert. The bad news are, that probably Livni will replace him. This would be a real nightmare.
The "original sin" of Olmert is that he prepared for a life of power, not necessarily for a life of dedication. He also knows how to feather nests, his own and that of others, but being a great PM eludes him completely. With the best lawyers available he may elude formal conviction, but his days are numbered.
Drop all charges against Olmert and the other crooks, in return for admission of guilt and Kadima resigning en mass while calling for immediate new elections. It will save us a lot of money for the investigations and save us all from the agony of continued governance by these corrupt incompetents.
school in politeces; give a shot with somebody else, somebody new. If you risk maybe you can win big price, and if you loose you will always have Nathan. Barak.... I hope that those politicians(that are written here in talkback) are not only in Eretz. Best rgds to all dzone
An honest leader isn't to be found that could lead a Banana Republic like Israel. The more corrupt, the bigger the possibility to get elected.
After a while these investigations undermine confidence in the law itself--as in the US's growing impatience with "Special Proesecutors".
The juridical and political situation in Israel has been burdened by the latest decision of the Attorney General to start a criminal investigation into Bank Leumi action of PM Olmert. This at a time when the Lebanon / Hezbollah investigation headed by Judge Winograd has to present its findings in a few weeks, if State Comptroller is preparing another report about Olmert?s government. This after a polling in Israel resulted in 85% voters calling Israel?s government corrupt. Furthermore it seems that additional criminal investigation within the top Israel echelon are to be started in addition to the already ongoing ones. Through media is informed of IDF Chief of Staff Dan Halutz commissioned over 50 military investigation concerning Lebanon/ Hezbollah. Non of these resulted in positive or neutral findings. Chief of Staff admitted ?mistakes on every level and declared that the lessons have / will be learned, and a ?repairing program is already functioning!.? - The public, media were fed off with report of one day?s lecture / particulars in an IDF top officer?s meeting and nothing further became known. - This when a very considerable part of Israelis still labors under the trauma in addition to losses of people, injuries etc. The Accountant General came out with a declaration of large sector corruption in Israel, which resulted him being protected by personal body guard after personal as well as to his family threats. The Attorney General suspended himself in the investigation case of PM Olmert as his government employed lawyer sister was actively involved in the preparation of sale. - Olmert already battered PM by his sinking popularity former court cases etc is facing possible further accusations by the Winograd Committee report and an additional ongoing State Comptroller investigations. - Under this circumstances it may become more than questionable if PM Olmert can continue to fulfill his position as Prime Minister. Whether possible suspension can be thought of under prevailing circumstances or even a resignation ? which would cause general election - or a politically on party lines exchange of the Prime Minister i.e. somebody else than Olmert. This was already ventilated publicly irrespective of its additional legal question. In addition the so far secretly carried out investigations by the Winograd Commission added to the existing complete in- information about military, politically, economically happenings concerning of Lebanon/ Hezbollah. ?The Israeli/ voter/ soldier/ citizen is entitle to be fully informed about all the ?mishaps happened in this connection. Consequently a way out maybe, Israel?s High Court to be approached into different issues namely, issue number one:- PM Olmert?s ability to fully function as Prime Minister under this circumstances or to be suspended fully. Secondly overriding already existing cabinet decisions concerning full publication of existing and to be issued investigation reports with military security censored restriction. MAY THE HIGH COURT DECISION HELP TO RESTORE NECESSARY CONFIDENCE IN ISRAEL? S GOVERNMENT.
From Theodor Herzl complete diaries: "We shall have to spirit the penniless population across the border by procuring employment for it in the transit countries, while denying it any employment in our own country... Both the process of expropriation and the removal of the poor must be carried out discreetly and circumspectly"
Same as inquiries against Barak , Netanyahu and Sharon this inquiry against Olmert will lead nowhere , moreover Olmert is clean , not only he said so in China , but bottom line the folks who were interested in this Bank Leumi tender backed off from the deal and Olmert's public position at that time operated within the law in this tender affair , , Peretz may manipulate , ridicule, mock and is in conptempt of PM Olmert , , Peretz , Livni , Barak , Netanyahu or others may want his job , , the high figures voices that will call and pressure for his resignation due to this inquiry are the ones working in line with 2002 Saudia machination plot against Israel , among others i am also refering to AG , State Comptroller , Beilin from Meretz , Yossi Sarid ect...for sure leftists journalists from Haaretz media , , , Olmert shouldn't , must not resign as Ramon did to clear his name , , , Olmert may be a big mouth slip ups , Olmert is also under US , EU and Britain pressure to revive this Road Map to Hell , but Olmert is the only one business like , capable enough of bringing back Shalit , Udi and Eldad with minimal or no damage to Israel counter terrorism policy and to thawrt Israel's enemies machination plots from within and outside , so far keep in mind its hypocrite Abbas , snake Syria and dark Iran who deny but openly use violence against Israel while pharaoh's poisonous king snake seen as top US ally and crisis mediator is playing a double game , , ,
...he & Livni surrender the Golan.
...when Lindenstrauss was under siege, the police were opining that maybe there was not evidence enough. Let's hope that, now the wind has changed yet again, the police will sense blood in the water (i.e. a historic opportunity to topple a prime minister, very good for the C.V.) and perform their job with the proper focus.
Israel more than any other country in the world needs its leaders to be ethical and honest. If this has any bit of truth to it then Olmert must resign and, for good measure take Katsav with him.
In the fight against corruption, as in the fight against terror, it is important to get the men at the top. In both cases, the "soldiers", left leaderless, will cave in.