Israel's attorney general on Sunday ordered a police investigation into political appointments made by Prime Minister Ehud Olmert when he was trade minister, dealing a fresh blow to the beleaguered politician who already faces two police probes.
Attorney General Menachem Mazuz instructed police to launch a criminal probe over suspicions pertaining to "political appointments and assisting political cronies in different public bodies during his [Olmert's] office as trade and industry minister" in 2005, a justice ministry statement said.
The investigation will also look into suspicions that Olmert abused his authority when assisting a private company represented by a lawyer who was also his close associate, the ministry said.
Olmert, who is not required to step down over the investigations, said in reaction to Mazuz's announcement that the new investigation, as well as the previous two, was "unnecessary."
"It appears obvious to us that the investigations are all bound to be closed without any results," his office said.
"Nevertheless, this pattern will not stop the prime minister from being personally involved and performing his duties in all the fields he is responsible for," he said.
This is the third criminal investigation Olmert now faces after Mazuz last month ordered a probe into Olmert's 2004 purchase of a Jerusalem home.
He is suspected of having received an effective bribe when he bought the property for about US$300,000 below the market price -- a charge he denies.
Last week police investigators questioned the premier over alleged abuse of influence in the privatization process of Bank Leumi, Israel's second largest, which he supervised in 2005.
Police suspect that Olmert, who was then acting finance minister in the government of prime minister Ariel Sharon, tried to steer the sale of Bank Leumi toward his friend, Australian property baron Frank Lowey.
The bank was eventually sold to another company unconnected to Lowey.
None of several corruption inquiries focused on Olmert since he took office in May last year has resulted in any charges being brought against the premier.
SHARING CONTROL
Meanwhile, Olmert raised questions about Israeli control of Arab neighborhoods in east Jerusalem, the first time he has openly signaled readiness to share control of the city with the Palestinians.
In a speech, Olmert noted that Israel had built a series of thriving Jewish neighborhoods in east Jerusalem, but signaled that Israel's control of Arab areas is not necessary.
"Was it necessary to also join the Shuafat refugee camp, Sawakra, Walaje and other villages and define them as part of Jerusalem?" he asked. "With that, I must confess it is possible to ask legitimate questions."



