Police question Israeli PM about foreign campaign donations

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"Police questioned Prime Minister Ehud Olmert on Friday in an investigation of campaign donations by a U.S. citizen — the fifth high-profile probe involving the Israeli leader whose popularity has badly suffered because of the repeated charges of corruption.

Olmert's office predicted he would weather the latest storm, but it threatened to further weaken his hold on power and potentially derail peace talks with Palestinians.

With a court-imposed gag order limiting information about the investigation, it isn't clear what allegations police are looking into, but Israeli law restricts how much politicians can get from donors. Former Prime Minister Ariel Sharon's son, Omri, is in jail for receiving donations that far exceeded the ceiling.

Olmert was questioned under caution, indicating police believed their interrogation could result in an indictment. If Olmert was indicted, he would have to resign. A decision on formal charges was at least months away."

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Who do you see Israelis choosing as their next PM?

but I fear that it won't be.

Hard to say at this point, I guess.

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"A major development is expected Tuesday in the criminal probe against Prime Minister Ehud Olmert.

The media has quoted senior law enforcement officials as saying that this affair is likely to remove him from office.

While the nature of the development cannot be revealed due to a court-imposed gag order, law enforcement sources on Monday said it may lead to an indictment against the prime minister.

They added that the former head of the Prime Minister's Office under Olmert, Shula Zaken, may be indicted for similar charges. Zaken is currently under house arrest."

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Israel Scandal's LI (Long Island) Link

http://www.nypost.com/seven/05062008/news/regionalnews/israel_scandals_li_link_109573.htm

Revealed: Bizman Who Might Topple Olmert

<snip>

"A Long Island mogul is at the center of a sensational bribery scandal that could bring down embattled Israeli Prime Minister Ehud Olmert, The Post has learned.

Millionaire financier Morris Talansky - who runs an investment firm out of his tony home in Woodmere - allegedly passed money to Olmert while the politician was mayor of Jerusalem in the '90s, sources said.

In a highly unusual move, Israeli authorities have barred the country's media from publishing Talansky's name - revealed now in The Post - saying it could hamper their investigation. Israeli media has referred only to the involvement of an "American businessman."

Talansky is apparently set to sing to Israeli authorities about his alleged role in the scheme, sources said."

<snip>

"Talansky - a philanthropist and political contributor to everyone from Rudy Giuliani to Bill Clinton - is in Jerusalem, where he has an apartment, preparing to head to a closed-door court hearing as early as today, sources said.

The 75-year-old was earlier questioned about the alleged scheme almost immediately after arriving in the country for Passover, and he implicated Olmert, sources have said.

It was unclear what the alleged payments to Olmert were for, but sources said they involved hefty amounts of cash."

Palestinian officials concerned that new affair faced by Olmert will prevent Israel from moving forward on diplomatic front; Peace efforts undertaken at this time may be useless, senior PA official tells Ynet

http://www.ynetnews.com/articles/0,7340,L-3540337,00.html

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"The Palestinian angle on the Olmert affair: Palestinian Authority officials are concerned that the new suspicions against Prime Minister Ehud Olmert will affect his ability to make progress in Israeli-Palestinian peace talks, PA sources said Tuesday.

A senior Palestinian source told Ynet: "We are concerned that everything that happens now between Israel and us will be useless and a waste of time."

According to this source, the PA was surprised to hear Olmert's Office reporting progress in talks on the issue of borders.

The senior source said that after reports on the new Olmert affair surfaced, the PA assumed the Israeli PM was trying to maintain a "business as usual" facade even while facing an investigation.

The PA is also worried that Olmert will be accused of using the negotiations to shift the spotlight away from his probe. Under the circumstances, the Palestinians fear that he will neither have political nor public legitimacy – and even less moral authority – to reach any kind of agreement or understanding with the Palestinians."

The motives of the various parties to the negotiations seem to have more to do with public relations than any desire to reach a workable settlement. But it seems unlikely that the current Israeli government has the means or the legitimacy to enforce any such agreement. Or Mr Abbas rump government either.

GARDEN CITY, N.Y. (AP) — A New York-area businessman and philanthropist has emerged as a key figure in an Israeli investigation into financial dealings of Ehud Olmert that have cast a new cloud over the embattled prime minister.

Morris "Moshe" Talansky of Woodmere, Long Island, was questioned by police in Israel about reported payments he made to Olmert in the 1990s, when the prime minister served as Jerusalem's mayor, according to the New York Post, which first reported the story Tuesday.

The investigation, which emerged last week, threatens to embarrass Olmert as the country marks its 60th anniversary of independence on Thursday. Dozens of world leaders, including President Bush, are scheduled to join celebrations next week.

An Israeli court has barred publication of most details of the case. A court statement Tuesday said police and prosecutors have submitted a request "to take testimony from a foreign resident."

http://ap.google.com/article/ALeqM5gdRHFH3MWfB_HavrUn-J3rX7uoIwD90GDSTG1