Former Israel PM in bribery scandal

The former prime minister of Israel has been named as the key suspect in a real estate scandal. Ehud Olmert is the hitherto unnamed senior official suspected of taking a bribe of 3.5 million shekels (700,000 euros) to facilitate the construction of the Holyland project in Jerusalem.

Reuters

A court removed a gagging order Thursday that forbade the publication of Olmert's name in connection with the corruption scandal.

Olmert's associate attorney, Uri Messer, was arrested last week and his former bureau chief, Shula Zaken, is expected to be taken in for questioning when she returns to Israel from abroad.

Both are suspected of helping to transfer money to Olmert from Hillel Charney, who owns the site.

The former mayor of Jerusalem, Uri Lupoliansky, was arested Wednesday, suspected of being involved in the same affair.

Lupoliansky was mayor of the city between 2003 and 2008 is accused of acepting 3 million shekels from the owner of the site of the Holyland project in exchange for pushing forward the project by rejecting about 1,000 objections that were filed against it and reducing building fees.

He is also suspected of money laundering, conspiracy, fraud, breach of trust and tax offences. 

The Holyland project contains 1,000 residential units, including a 14,000 m² lot for a hotel. It was planned in 2005 and the final approval came in 2006.

Olmert was mayor of Jerusalem from 1993 to 2003. Lupoliansky says this means Olmert was the one who was responsible.

It is not the first time Olmert has been accused of corruption. New York-based financier Morris Talansky said he handed over $150,000 between 1997 and 2005 to the former prime minister to fund political campaigns. Olmert says the donations were legal, but prosecutors say Olmert failed to declare the funds. They say he received at least $600,000 in total.

In another case, he and his aide Shula Zaken are accused of developing a system to overcharge the state and Jewish charities for trips abroad, through which he made $92,164.

And as minister of trade and industry, Olmert has been charged with fraud and breach of trust. Prosecutors say he dealt personally with businessmen, creating conflict of interest.