Saturday, May 10, 2008

Corruption in high places

PM Olmert is again under suspicion of having engaged in corrupt practices several years before he became PM. The Justice Dept. placed a gag order on publishing details of this case until yesterday, but that is now lifted. Previously four cases of corruption were investigated against Olmert, one involved the purchase of his house in Jerusalem for an unusally low price, another involved the privatization of Bank Leumi. However, in none of these cases was there enough independent evidence, so (as far as I know) all the cases were dropped.
However, the latest case is different because there are two potential witnesses that may be persuaded to give evidence. First there is the American Jewish millionaire, Morris Talansky, who comes from Long Island. Apparently, if any American Jew is willing to donate a few hundred thousand dollars he can influence our political system. The funds Olmert was given by Talansky were donated while he was running for Jerusalem Mayor in 1993 through a dummy organization set up for the purpose named "The New Jerusalem Fund". This kind of situation is not unique, one should remember that Omri Sharon is serving a jail sentence for carrying our a similar scheme on behalf of his father, when American money was laundered thru a phoney organization in order to aid his election.
The other potential witness is Olmert's longtime lawyer and friend, Uri Messer, to whom Olmert says Talansky actually gave the money. There is also a third potential witness, Shula Zaken, Olmert's former bureau chief, who may be charged in the case, but who so far, after extensive police questioning, has kept quiet. The police are investigating and must decide if they have enough evidence to turn the file over to Atty. Gen. Meni Mazuz for him to actually charge Olmert. Unfortunately the delay while Mazuz considers whether or not to bring the case will be very detrimental to the State. Olmert has already said that if he is indicted then he will resign, but that may be some months away.
Obviously Olmert's political enemies, such as Bibi Netanyahu of Likud, want him to resign immediately and call a new election, but he is not about to do that. Others in his own coalition want him to hand over power (temporarily) to a trusted aide, and the name of FM Tzipi Livni is most often mentioned in this respect. If he can be persuaded to do this and if she can maintain the coalition, then this would avoid a new election, which the incumbents in the Knesset prefer because they fear that they would lose their seats in a new election. Livni would ensure maximal continuity in the negotiations with the Palestinians because she is in charge of them.
The timing of this legal case is unfortunate (and perhaps deliberate) since Pres. George Bush is due to visit Israel next week to celebrate the Israel's 60th Anniversary and to try to push the peace process forward. However, this is not likely to be successful, not only becasue there is really no progress, but both Pres. Abbas of the PA and Olmert are so weak that neither of them can afford to make any significant concessions to the other (and Bush is a "lame duck").
When asked how Olmert's precarious political situation will affect his visit and the negotiations, Bush replied that it is an internal Israeli matter and he was not not going to comment on that aspect of the situation. So we all know what that means, as most experts predicted, there is no real progress in the Annapolis talks, and there is really nothing concrete for him to say. Expect him to mouth the usual platitudes, while the Iranian proxies in Lebanon and Gaza are getting stronger by the day.

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