Skip to main content
BBC NEWS / MIDDLE EAST
Graphics VersionBBC Sport Home
News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |
Tuesday, 9 October 2007, 18:24 GMT 19:24 UK

Fraud police question Israeli PM

Israeli Prime Minister Ehud Olmert Israel's Prime Minister, Ehud Olmert, has been questioned by police over his role in a bank privatisation deal.

He is suspected of trying to influence the sale of the state's controlling interest in Bank Leumi in favour of a friend whilst finance minister in 2005.

Mr Olmert has denied any wrongdoing. He has faced other corruption inquiries, but no formal charges have been filed.

Last month, the attorney-general opened a criminal investigation into his purchase of a property in Jerusalem.

The move came after a government watchdog concluded Mr Olmert paid $325,000 (£162,500) below market value for the house to a developer.

Other politicians have also been blighted by serious allegations. Earlier this year, Israel's former President, Moshe Katsav, struck a plea bargain with the attorney-general to avoid rape charges.

Fraud unit

He was questioned for five hours at his official residence in Jerusalem by three National Fraud Unit investigators, police say.

OLMERT TIMELINE

Profile: Ehud Olmert

Israel's graft 'epidemic'

Mr Olmert will be questioned again on Thursday, they added.

No details of the interview have been released.

The investigators were expected to ask the prime minister about possible conflict of interest, how his friend, Australian businessman Frank Lowy, was convinced to enter the bidding for Bank Leumi, and whether any of the changes Mr Olmert introduced in the tender were at Mr Lowy's behest.

The prime minister has said he persuaded officials to make several changes to the tender to encourage strategic investors to bid for the bank.

At the end of the investigation, the police will present their recommendation to the State Prosecutor's Office.

Observers say it may be difficult to prove any wrongdoing because Mr Lowy ultimately withdrew his bid and there seems to be no evidence of Mr Olmert having received anything in return.

However, the prime minister could face charges of breach of trust if it is proven he took an active role in the sale despite an apparent conflict of interest.

Mr Olmert is the last person to be questioned in the case. Israeli police questioned Mr Lowy in Australia in May.




E-mail this to a friend
Related to this story:
Ehud Olmert: Corruption allegations (12 Oct 07 |  Middle East )
Israel faces corruption 'epidemic' (24 Sep 07 |  Middle East )
Israeli PM faces corruption probe (24 Sep 07 |  Middle East )
Profile: Ehud Olmert (24 Sep 07 |  Middle East )
Israel president sex case delayed (01 Jul 07 |  Middle East )
Olmert faces bribery allegations (25 Oct 06 |  Middle East )
Israeli bank investigation widens (07 Mar 05 |  Business )

RELATED INTERNET LINKS
Israeli Prime Minister's Office
Israel Police
The BBC is not responsible for the content of external internet sites



SEARCH BBC NEWS: 

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |

NewsWatch | Notes | Contact us | About BBC News | Profiles | History

^ Back to top | BBC Sport Home | BBC Homepage | Contact us | Help | ©