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| By israelinsider staff April 26, 2007 |
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Investigations and accusations pile up for the Israeli prime minister as Attorney General Menachem Mazuz calls on Olmert to give up the finance portfolio. Meanwhile, an investigative team travels to Australia to continue their probe into Olmert's involvement in the Bank Leumi affair.
Mazuz ordered Olmert Thursday to appoint a new finance minister to replace recently self-suspended Avraham Hirchson, claiming that Olmert retention of the portfolio could lead to conflicts of interest related to the Bank Leumi investigation.
A letter sent by Mazuz's office Thursday points to Olmert's potential influence over those who may possibly testify against him.
According to the letter, "The attorney general maintains that legal problems have arisen from Olmert's decision to temporarily hold the finance portfolio, especially in light of pending investigations involving his connection to the privatization of Bank Leumi."
Olmert took the post for the interim after Hirchson temporarily suspended himself due to investigations into his alleged embezzlement.
As the Bank Leumi probe continues, a National Fraud Investigative Unit team left for Australia Wednesday to effect a judicial inquiry into friend of Olmert, Frank Lowy.
Olmert is suspected of manipulating the privatization of Bank Leumi to Lowy's benefit.
Mazuz is now expected to open yet another probe into the prime minister - this time into the Investment Center case, after State Comptroller Micha Lindenstrauss presented to him Wednesday his scathing report entitled "Israel Investments Center - Uri Messer."
While serving as industry, trade and labor minister, Olmert was allegedly involved in an Investment Center decision that granted $10 million to a factory represented by Uriel Messer, his close friend, lawyer and former business partner.
Army Radio reported that a senior Justice Ministry official called a second investigation into Olmert's involvement in the matter imminent.
In his report, Lindenstrauss recommended that Mazuz open an investigation into the matter.
"Olmert should have entirely stepped back from dealing with the request by the company represented by Messer. By not doing so, he was party to an illegal conflict of interest," the report stated, continuing that Olmert remained involved in the affair "in spite of the evident conflict of interests raises concerns that ethical conduct was violated."
The Prime Minister's Office issued a harsh statement Wednesday in response to the report, saying that "The comptroller's behavior in this matter reached new levels of shamelessness and lack of professionalism," claiming Olmert had lost faith in Lindenstrauss.
Director-general of the State Comptroller's Office Shlomo Gur rejected the statement, telling Army Radio that "The comptroller's office is managed and operates according to professional standards, and there is no personal vendetta here."
According to a PMO statement, Olmert "did not and does not have any ties with the entrepreneur [behind the] factory. The prime minister's acquaintance with the entrepreneur's attorney is insufficient to prevent him from fulfilling his professional duties as a minister, according to the ruling of the High Court of Justice. In view of this, we have no doubts that this affair, too, like all the other affairs examined by the comptroller, will come to naught."
The Prime minister's lawyer, Eli Zohar, told Haaretz that "... there is no substantive or legal justification that Olmert should have disqualified himself from deliberations in this matter. This may appear to be a conflict of interests, but not a blatant conflict of interests, and also not an illegitimate conflict of interests. It is true that Messer was Olmert's partner 20 years earlier and that he is occasionally dealing on his behalf with real estate deals, but their association did not create any bond that establishes the sort of commitment that requires the minister to consider disqualifying himself."
According to Haaretz, Lindenstrauss is expected to publish another report recommending a criminal investigation whose subject involves Olmert's purchase of a home in Jerusalem. |
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