TEL AVIV // Corruption in Israel's top political echelon is not showing any signs of abating. Yesterday, Ehud Olmert, the former Israeli prime minister, was interrogated for eight hours by fraud investigators for the first time as part of a high-profile Jerusalem property case that has been described by local analysts as the largest-scale corruption scandal in the country's 62-year history.
Mr Olmert's interrogation took place just hours after police announced that they are recommending that Avigdor Lieberman, Israel's foreign minister, be charged with breach of trust for an alleged attempt to disrupt a probe into his business dealings. Mr Olmert is already standing trial in a separate corruption episode that forced his resignation as premier in 2008; Mr Lieberman is facing possible charges of money laundering and bribery in another case under investigation since 2006.
Both developments, which made front-page newspaper headlines yesterday, could further fuel Israelis' anger at escalating political graft. They might also contribute to Israel's already deteriorated image abroad, which suffered a severe blow after the 22-day devastating assault in the Gaza Strip that ended in January 2009 and has since been damaged further by Israel's hard-line approach to the Palestinians, including the continued construction of Jewish homes in East Jerusalem.
The police investigations are a sign that political corruption is increasingly less tolerated by Israeli law enforcement officials. Michael Warschawski, the founder of the Alternative Information Centre in Jerusalem, said: "They reflect a positive evolution inside Israel. Mismanagement of public money has been the norm since the establishment of Israel, but only now it is presented to the public as misbehaviour."
The current case involving Mr Olmert has been dubbed the "Holyland affair" because it is tied to a major Jerusalem luxury housing project called Holyland, whose fortress-like circle of towers has raised questions about how such high-rise construction was permitted in a city that is mostly low-rise. Police suspect that during Mr Olmert's term as Jerusalem mayor, from 1993 to 2003, and as minister of industry and trade, from 2003 to 2006, he accepted more than 1 million shekels' (Dh960,000) worth of bribes from property developers in exchange for approving projects such as Holyland, which is widely regarded as an eyesore.
The Israeli media reported that police discovered documents outlining hefty bribes paid to allow the compound's construction to advance over the past decade, help developers benefit from lower taxes and fees, and dodge planning restrictions. Mr Olmert has vehemently denied wrongdoing in the scandal, which has also involved the arrest of seven other figures, including Uri Lupolianski, another former mayor of Jerusalem, as well as Shula Zaken, a long-time confidant of Mr Olmert. Dozens of others have been questioned.
Mr Olmert, 63, is already on trial for separate charges of corruption after an investigation into his alleged acceptance of illegal funds from a partner in the United States as well as into his possible double-billing of Jewish groups for trips abroad. In another investigation, he is under suspicion for arranging high-level posts for political allies at governmental agencies and large state-owned corporations, the liberal Haaretz daily newspaper reported yesterday.
Mr Lieberman is also no stranger to graft allegations. In the most serious case against him, police recommended indicting him last year on charges of bribery, money laundering and obstruction of justice in an investigation that is reported to involve alleged use of front companies, some in Cyprus, to launder funds. The current scandal concerns allegations that Mr Lieberman illegally received a copy of a confidential file obtained by Israel's former ambassador to Belarus in 2008. The file is said to have contained details about police suspicions of money laundering against the Mr Lieberman, according to Israeli media.
The police had directed the file to authorities in Minsk to request information about the case that may have involved money transfers from Belarus. Israel's attorney general, Yehuda Weinstein, who is politically unaffiliated, will have to decide whether to indict Mr Lieberman in both cases, a process that could take months. Mr Liebermann has said in the past that he was innocent but would resign as foreign minister if he was to be indicted.
The allegations against Mr Lieberman, whose party, Yisrael Beitenu, forms the second-largest faction in the predominantly right-wing governing coalition, may be a further blow to his credibility as the country's top diplomat. He is an ultranationalist who has been dubbed a racist for his anti-Arab rhetoric., Egypt and Syria were reported this month to have threatened to boycott next month's conference of European and Mediterranean countries in Spain if Mr Lieberman attends. The clash seems to have prompted last week's announcement that the summit will be postponed.
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