Sharon will stay PM 'until 2007'

The scandal could spell serious trouble for Sharon

Israeli Prime Minister Ariel Sharon intends to see out his term in office despite being named in a bribery case.

"I came here as prime minister... a position I intend to fill for many years at least until 2007," he said.

An Israeli businessman has been charged with offering millions of dollars in bribes to Mr Sharon, his deputy and one of Mr Sharon's sons.

The Israeli leader denies wrongdoing but prosecutors said on Wednesday they were considering charging him as well.

I came here as prime minister and chairman of the Likud party... positions I intend to fill for many years, at least until 2007 Ariel Sharon

The BBC's David Chazan in Jerusalem says Mr Sharon's political credibility is taking a battering.

The prime minister himself is so far not facing any charges, but Justice Ministry officials say they are weighing up evidence against him and will decide whether he should be charged in the next few weeks or months.

Our correspondent says his future hangs on that decision, because if charged he will almost certainly have to leave office.

About half of Israelis believe Mr Sharon was involved in misconduct and should resign or at least step down temporarily, according to opinion polls.

On Wednesday, opposition MPs tabled a no-confidence motion against Mr Sharon which will go before the parliament on Monday.

PREVIOUS SCANDALS 1977 - Yitzhak Rabin resigns after wife found to have US bank account 1999 - Binyamin Netanyahu investigated, although never charged, over allegations of misuse of state funds after leaving office 2001- Ehud Barak questioned over alleged fundraising irregularities in 1999 election campaign None of these cases ever came to trial Sharon corruption probes

"The prime minister should resign from his post," said former Labour finance minister Avraham Shochat.

"He should already have resigned in the light of earlier events, what happened today is just an extra. He is polluting the atmosphere," he said.

Parliamentary leaders of Mr Sharon's right-wing Likud party are also reportedly preparing a bill on procedures for replacing a prime minister who resigns.

Palestinian officials said they were fearful Mr Sharon might try to deflect attention away from the scandal.

"We are warning against the possibility that Ariel Sharon take advantage of this corruption scandal to embark on a military adventure in the Palestinian territories or somewhere else in the region," said Nabil Abu Rudeina, a senior aide to Palestinian leader Yasser Arafat.

Property deal

Mr Sharon is not the first Israeli prime minister to be accused of corruption but he is the first to be named in charges issued by state prosecutors against someone else.

SHARON'S SONS Gilad is manager of his father's business affairs and of his western Negev farm The indictment says Mr Appel agreed to hire Gilad to promote the planned development of a Greek island resort Gilad has no prior experience in the tourism industry Omri is a trusted advisor to Prime Minister Sharon In the first few months of his father's tenure Omri acted as a go-between with Yasser Arafat He is now a first-term Likud legislator

David Appel has been charged with trying to bribe the Israeli leader, his son Gilad and Deputy Prime Minister Ehud Olmert in the late 1990s, in return for their help in a Greek property deal.

Mr Appel is also said to have helped Mr Sharon campaign for the Likud leadership.

Prosecutors say money was in effect used as a bribe for Mr Sharon, who was then foreign minister, though the payment was said to have been made to Gilad and not to his father.

Police are also pursuing a separate investigation into the Sharon family: Gilad Sharon and his brother, Omri, are known to have accepted about $1.5m from a friend of the prime minister, South African businessman Cyril Kern.