Damaging New Corruption Allegations Against Olmert

JERUSALEM 11 July, 2008 -- Prime Minister Ehud Olmert is facing new corruption allegations today.

Israeli police issued a statement accusing him of making duplicate expense claims for official trips abroad while he served as mayor of Jerusalem and later as minister for trade and industry.

"According to the suspicions, during his tenure as Jerusalem mayor and trade and industry minister, Olmert would seek duplicate funding for his trips abroad from public bodies, including from the state, with each of them requested to fund the same trip," the statement read.

According to local media reports (Haaretz newspaper's Web site), organizations that were asked to fund Olmert's travel were presented with individual receipts and included a charity for mentally disabled children, and a U.S. based charity supporting injured Israeli soldiers, called American Friends of the IDF.

Olmert was mayor of Jerusalem for 10 years until 2003.

Police allege that Olmert kept the extra funds in a private account that was then used to pay for family trips abroad.

Olmert was also questioned at his official residence today by police about allegations he received illegal cash donations worth thousands of dollars from U.S. businessman Morris Talansky.

In colorful pre-trial testimony last month, Talansky described giving Olmert envelopes stuffed with cash during his visits to the United States. Police accuse Olmert of spending that money on first-class plane tickets, luxury hotel rooms, cigars, watches and expensive pens.

Today's new police allegations are not thought to be connected with the Talansky probe but will put the prime minister under further pressure to step down.

He has already agreed to hold primary elections this September to elect a new leader of his own political party. He has not ruled out putting himself forward as a candidate. But the mounting allegations against him make his political future increasingly uncertain.

In response to the latest allegations, Mark Regev, the prime minister's senior spokesman, told ABC News, "The prime minister is convinced he has done nothing wrong and as the investigations continue, he is sure this will become apparent to all."