PM denies allegations, says will quit if indicted
Olmert suspected of accepting illicit funds from U.S. businessman
By Haaretz Service and News Agencies Last update - 23:56 08/05/2008
www.haaretz.com/hasen/spages/981744.html

Prime Minister Ehud Olmert admitted on Thursday that he accepted campaign
donations from an American businessman, but denied that they were bribes
and said he would only resign if he were indicted.

Olmert is suspected of illicitly receiving hundreds of thousands of dollars
from Morris (Moshe) Talansky, according to the details of an investigation
currently being carried out against him.

At the request of police and judicial officials, the Tel Aviv Magistrate's
Court on Thursday relaxed a sweeping media gag order that has prevented the
reporting of details on the probe. Olmert was questioned last Friday and the
gag order was initially meant to remain in place until early next week.

In a terse, late-night televised statement to journalists at his residence
in Jerusalem, Olmert said that a lawyer had handled his finances and that
everything had been done legally. "I never took bribes, I never took a penny
for myself, he said."

He said he would not fight to stay in office if he is charged over the
allegations.

"I was elected by you, citizens of Israel, to be the prime minister and I
don't intend to shirk this responsibility," he said. "At the same time, and
even though the law does not require me to do this, I will resign from my
job if the attorney general decides to issue an indictment against me."

Olmert convened the news conference as speculation swirled that the police
investigation into his affairs would increase pressure on him to resign.

Channel 10 TV reported prior to Olmert's statement that Talansky was a
middleman for illegal campaign contributions, and that he readily told
Israeli interrogators everything he knew about the case.

The contributions were allegedly made while Olmert was mayor of Jerusalem,
before he became prime minister. Channel 2 TV reported that police do not
know what the money was used for.

The attorney general, State Prosecution officials and police investigators
met Thursday to discuss what aspects of the gag order, placed last week on
all details surrounding the case, could be relaxed.

Police said earlier this week that leaks coming from the foreign media
regarding the investigation "undermined" the gag order on the case and
rendered it "losing its significance."

Also Tuesday, the New York Post revealed details on the probe on its Web
site, including the name of the foreign national summoned by police for
questioning, but these details were banned in Israel.

The Jerusalem Magistrates Court on Tuesday morning rejected a petition by
Haaretz and Channel 10 television to lift the gag order on the details of
the probe, ruling that the order would remain in effect until it expires on
Sunday.

Attorney Mibi Mozer, on behalf of Haaretz, told the court that the gag order
created an imbalance between the necessity to refrain from perverting the
course of justice, and the public interest to be informed of the nature of
the allegations against the prime minister.

Even before the gag order was loosened, Olmert's opponents were calling on
him to resign. Olmert is the target of several other investigations, but he
has never been charged or convicted.

Attorney General Menachem Mazuz has ordered two separate criminal
investigation into suspicions that Olmert acted improperly while he was
trade minister. He is also suspected of improprieties in the purchase of a
house in Jerusalem.