WORLD> Middle East
Israeli attorney-general considers charging PM Olmert
(Agencies)
Updated: 2008-11-27 09:05

JERUSALEM -- Israel's attorney-general said on Wednesday he was considering indicting Prime Minister Ehud Olmert for fraud, bribery and tax evasion in a case over fake travel expenses that has already forced him to resign.

US President George W. Bush (R) meets with Israel's Prime Minister Ehud Olmert in the White House in Washington, November 24, 2008. [Agencies]

Olmert is serving as caretaker prime minister until a new government is formed after a February 10 election, but an indictment could increase pressure on him to leave office earlier.

The announcement by the Justice Ministry came after Olmert wrapped up a visit to Washington where he met President George W. Bush and held out hope for a last-minute peace deal with the Palestinians.

Attorney-General Menachem Mazuz told Olmert he was "considering bringing criminal charges regarding suspicions of various violations as part of the Rishon Tours Affair," a statement said.

Olmert's lawyers responded in a statement that the prime minister "totally rejects the suspicions against him" and they were confident he would not be charged.

An official in Olmert's office said he had no intention of stepping down before a new government was formed.

The Justice Ministry said the charges being considered stemmed from allegations that Olmert submitted duplicate bills to various Jewish organisations abroad and inflated travel costs while serving as Jerusalem mayor and in another cabinet post.

"Under Mr. Olmert's instruction and knowledge, the funding organisations were systematically shown false accounts," and Olmert collected $85,000 in profits he used to fund private trips for him and family members, the statement said.

Mazuz's statement, issued two months after police had recommended an indictment, said he offered Olmert the option of a hearing before deciding whether to charge him on four counts of bribery, fraud, false documentation and tax evasion.

Israeli media said the charges carry a maximum jail sentence of seven years.

Police have launched several corruption investigations into Olmert, who has denied any wrongdoing but resigned in September after his ruling Kadima party elected Foreign Minister Tzipi Livni as his successor.

An early national election was scheduled after Livni failed to form a new coalition last month.

Under Israeli law Olmert remains as caretaker until a new government is formed after the election. But analysts said he might be forced to step aside sooner, if he were charged before the election.

Olmert has also been questioned for allegedly accepting envelopes stuffed with cash from an American Jewish fundraiser and using a cabinet post to promote a friend's business interests.