Israeli PM Olmert to Resign

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http://www.haaretz.com/hasen/spages/1007051.html

Olmert: I'll quit once new Kadima leader chosen

By Barak Ravid, Haaretz Correspondent and Haaretz Service

Tags: Kadima, Ehud Olmert, Israel

Prime Minister Ehud Olmert said Wednesday that he has decided not to contend in the Kadima primary election and would resign as soon as the new party leader was chosen, due to the criminal investigations that have embroiled him in recent months.

"I have decided I won't run in the Kadima movement primaries, nor do I intend to intervene in the elections," Olmert said in an official statement to the public from his official residence in Jerusalem on Wednesday evening.

"When a new [Kadima party] chairman is chosen, I will resign as prime minister to permit them to put together a new government swiftly and effectively," he added.

The prime minister has been under official investigation in recent months over allegations of corruption in his former capacities as Jerusalem mayor and trade minister.

Political sources had expected Olmert to announce that he would not run in upcoming leadership contest in his Kadima party, scheduled for September 17. This decision in effect signals an end to Olmert's political career.

Olmert began the address by saying that despite having been beset by investigations during his tenure, he has improved the situation in Israel and continues to believe that peace is the most important track for the country.

The prime minister went on to say that as long as he was in power, he would work toward this goal of peace.

"I am proud to be the prime minister of a country that investigates its prime ministers," he said. "The prime minister is not above the law, but he is in no way below it."


The two most prominent investigations involve suspicions that Olmert took bribes from American businessman Morris Talansky, and charges he submitted duplicate claims for travel expenses which he allegedly used to fund family trips abroad. He has denied wrongdoing, but said he would resign if indicted.

Olmert's announcement comes a day after Kadima said it had scheduled its leadership vote, an election that could lead to Olmert's ouster.

The prime minister's advisers in recent days have split into two groups: those who expect him to continue in his position and resign only if indicted, and those who have been urging him not to run in the primary elections and conclude his term with an air of respect.


Previous scandals linked to Olmert

Olmert's announcement was made against the backdrop of a number of scandals with which he has been linked in recent years.

Allegations of improprieties linked to the purchase of his home on Cremieux Street in Jerusalem, the Talansky affair, and "Rishon Tours" have dogged the premier of late.


Police investigators suspect that the Olmert family took dozens of trips abroad which were paid for with funds from an account Olmert kept with the Rishon Tours travel agency in Rishon Letzion.

"We are talking about many family trips of at least two family members at a time, for example mother and daughter, or two of the children, whose travel expenses were covered by the account in Rishon Tours," law enforcement sources said.

"In the Rishon Tours affair, the case is unequivocally substantiated and by all appearances it will result in an indictment," sources said.

Police who flew to the United States to gather evidence in the case came away with findings which sources termed "satisfactory."

Olmert was first investigated on suspicions that third parties were improperly financing family trips abroad as far back as 1991, when the premier served as a Likud member of Knesset. The investigation failed to yield sufficient evidence for an indictment.

Police are investigating allegations that Olmert illegally received funds while serving in his various governmental positions in the years prior to his ascendancy to the premiership.

As minister of industry and trade (2003 ? 2006) and as mayor of Jerusalem (1993 ? 2003), Olmert is alleged to have accepted significant sums of money, both directly and indirectly, from at least one third party.

The amount of cash given to Olmert is estimated to exceed hundreds of thousands of dollars.