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Wednesday, May 28, 2008

Evidence against Olmert 'overwhelming'

JERUSALEM — Israeli Prime Minister Ehud Olmert could be toppled by his rivals in the ruling Kadima Party within weeks.

Political sources said Olmert, accused of receiving hundreds of thousands of dollars in secret cash payments from an American businessman, would probably be forced to step down by September 2008, Middle East Newsline reported. The sources said Olmert would certainly be indicted on one of several criminal charges, including violation of public trust and tax evasion.

"The evidence against the prime minister is overwhelming, and there is no willingness among prosecutors to delay the case," a senior political source said. The sources said Olmert's rivals within Kadima want to depose the prime minister before he is indicted out of concern that this could lead to new elections. Kadima, established by then-Prime Minister Ariel Sharon in late 2005, was expected to lose about two-thirds of its 29 seats in parliament.

"In this parliamentary session, either there will be a new government or there will be a date for early elections," Knesset member Ophir Pinas, a Labor Party member, said.

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Olmert faces such rivals as Foreign Minister Tzipi Livni and Public Security Minister Avi Dichter. Political sources said Livni and Dichter were believed to be discussing a plan to topple Olmert and form an emergency government with the Labor Party, led by Defense Minister Ehud Barak.

"The idea is built around the mutual interest that neither Kadima nor Labor wants early elections," another source said. "But if Olmert is brought down by an indictment then anything can happen."

Political sources said Barak was examining the option of forming an emergency government with opposition leader Binyamin Netanyahu, chairman of the Likud Party. Under this option, the sources said, Kadima would not be part of the coalition.

"I don't think that the prime minister can manage the country and deal with his personal issues," Barak said on Wednesday. "I think the prime minister must separate himself from the daily operations of the state. The Kadima Party must act. It has to happen soon."

At a news conference, Barak did not set a deadline for Kadima to remove Olmert from office. But the defense minister warned that if Kadima fails to act, then Barak would seek to convene early parliamentary elections.

On Tuesday, American businessman Morris Talansky testified for seven hours in a Jerusalem court that he provided Olmert with at least $150,000 in secret cash payments since the 1990s. Talansky said Olmert's secretary would contact the American and arrange for meetings where Olmert could pick up envelopes of cash for vacations, luxury hotels, watches, cigars and first-class air travel. "I never got any of the money back," Talansky said.

Talansky was scheduled to resume his testimony in July. Chief prosecutor Moshe Lador said the investigation was proceeding and would not discuss the prospect of an indictment.

"No indictments were being mulled," Lador said. "The decision on whether to issue an indictment would be made when the investigation is over."

Olmert did not respond to Barak's appeal or Talansky's testimony. But aides said Olmert was intent on remaining in office and leading Kadima in elections scheduled for late 2009.

"The prime minister can manage Israel," Tal Silberstein, who serves as Olmert's political strategist, said. "He is doing it in a cool manner."


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