The State Prosecutor has decided to put former Prime Minister Ehud Olmert on trial for alleged favors he made when he served as Minister of Industry, Trade and Labor, Vice Prime Minister, Minister of Communications and Minister of Finance. Olmert's former aide Oved Yehezkel will also be tried and the pair will be given a hearing before any charges are brought.

Olmert is also on trial over three other investigations: Rishontours; Talansky; and the Israel Investment Center. He has also recently been linked to bribery allegations regarding the Holyland real estate development in Jerusalem.

The economics department of the State Prosecutor today told Olmert and Yehezkel's lawyers that after studying the file passed on to them by the police, along with the police recommendation, there is evidence that criminal violations took place regarding the affair. After discussions the State Prosecutor is considering putting Olmert and Yehezkel on trial, subject to a hearing.

The allegations are that when Olmert served as Minister of Industry, Trade and Labor, Vice Prime Minister, Minister of Communications and Minister of Finance, he took advantage of his position and authority, and worked systematically, despite a conflict of interest, to promote matters relating to Likud Central Committee members and activists and acquaintances. The favors were designed to strengthen Olmert's political position.

The allegations relate to dozens of instances concerning many bodies under Olmert's control including Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ), the Israel Postal Authority, the Israel National Employment Service, the Small Business Authority, and the Israel Land Administration. There are also suspicions that Olmert appointed Likud activists and their relatives as public representatives in the Labor Courts.

Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2010

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