Police grilled Israeli Prime Minister Ehud Olmert on Friday for the second time in three weeks in the latest corruption probe against him, which has sparked calls for his resignation. Anti-fraud squad officers questioned Olmert, 62, for about 90 minutes at his official residence in Jerusalem.
They are trying to establish whether Olmert dispensed any favours in exchange for funds he allegedly received illegally from millionaire US financier Morris Talansky during the 13 years before he became premier in 2006.
The state prosecutor believes Olmert received 100,000 dollars in cash from Talansky, and police are looking at money transfers that could have been used to finance private trips. Olmert, who was mayor of Jerusalem and trade minister before becoming premier, has denied any wrongdoing but admitted receiving money from Talansky to help finance election campaigns in 1999 and 2003.
"I have never taken a bribe, nor have I unlawfully pocketed money," he told a news conference earlier this month, denouncing what he called a "hysterical" campaign against him. Olmert was first questioned in the case on May 2. Talansky is scheduled to testify under oath before a judge on Tuesday, after his lawyers were able to have his deposition postponed by two days.
Police are looking into allegations that while he was a cabinet minister, Olmert contacted an Israeli diplomat in a Latin American country asking him to promote a technological project in which Talansky was a partner, the Maariv daily reported on Friday. Olmert is also alleged to have promoted the sale to hotels of minibars produced by a Talansky factory and to have used his influence to have speed bumps put up in a Jerusalem street where the businessman's grandchildren lived. The premier's political opponents say he should resign immediately, or at least step down pending the outcome of the investigation.
Palestinian officials have expressed fears that the affair could affect the Middle East peace process, particularly if early elections are called. Even Olmert's closest political allies have raised the possibility of elections later this year, about 12 months ahead of schedule. An opinion poll published by the Yediot Aharonot daily on Friday said that only 6 percent of respondents have full confidence in Olmert and 51 percent have no confidence in him whatsoever.
Olmert has said he will quit if charges are pressed against him. The Jerusalem Post, meanwhile, claimed that right-wing rabbis encouraged Talansky to give evidence against Olmert in the hope that this would bring down the prime minister.
Ultra-nationalist Israelis fear Olmert could cede to the Palestinians some areas of Jerusalem that Israel seized in 1967 and annexed shortly after. Several politicians have also accused Olmert of timing an announcement that Israel has renewed long-dormant peace talks with Syria in such a way as to divert attention from the growing corruption scandal surrounding him.
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