Police seek indictments in Tax Authority graft probe

Israel Police formally recommended Monday that the State Prosecution indict five senior officials, including a former senior aide to Prime Minister Ehud Olmert, for their suspected involvement in corruption within the Tax Authority.

Shula Zaken, who served as Olmert's office manager, is suspected of working to ensure the appointment of her associates to key Tax Authority positions, in exchange for favors. In February, she was suspended from her position for six months due to the suspicions against her.

The other four facing possible indictment are former Tax Authority head Jackie Matza and his predecessor Eitan Rub, and businessmen Kobi Ben-Gur and Yoram Karashi. Karashi is also Zaken's brother.

In the course of the investigation, the police wiretapped telephone conversations between Zaken and her close associate Matza, in which Zaken asked the then head of the Tax Authority to give tax breaks to her businessmen associates, and to grant them special terms after they became embroiled in tax problems with the authorities.

Zaken also asked for tax benefits for her friend restaurateur and businessman Simo Tobol. Matza allegedly granted Zaken and her brother Karashi the favors they requested.

The results of the police investigation backed up suspicions that Ben-Gur and Karashi were involved in the appointments of top officials in the Tax Authority, and subsequently received extensive favors and secured favors for their associates. Police also suspect that Matza and his predecessor Rub were both aware of the corruption, and even contributed to it.

The police was convinced since the outset of the investigation that enough evidence existed to indict the major players in this affair.

	Shula Zaken, former office manager of Prime Minister Ehud Olmert and suspect in Tax Autority corruption scandal. (Alon Ron)