Reuters AlertNet Lite - Aide to Israel's Olmert questioned in tax probe

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Aide to Israel's Olmert questioned in tax probe

02 Jan 2007 18:05:58 GMT
Source: Reuters

JERUSALEM, Jan 2 (Reuters) - Israeli police said they questioned Prime Minister Ehud Olmert's executive secretary, the country's tax commissioner and other officials on Tuesday on suspicion of involvement in payoffs in exchange for tax breaks.

Olmert himself was not questioned nor accused of any personal involvement in the scandal.

Shula Zaken, a longtime aide to Olmert who is the administrative head of his bureau, and Israel's tax commissioner Jacky Matza, were among 20 officials and other Israelis quizzed, Micky Rosenfeld, a police spokesman, said.

Rosenfeld said a court had accepted a police request for Zaken to be put under house arrest for 10 days, and had yet to decide on other suspects.

Police for months had been investigating allegations that top government officials had either received or given bribes to win tax breaks for companies, Rosenfeld said.

He said some officials were suspected of naming associates of certain businesses to the authority that administers taxes.

Zaken's lawyer, Micha Fettman, said on Army Radio that "she denies the suspicions" against her.

Appointments to the tax authority go through the prime minister's office.

Olmert's spokeswoman, Miri Eisin, had no comment.

The tax commissioner's spokeswoman also declined to comment.

Olmert himself has been the subject of several investigations by the state comptroller. In October, the comptroller accused Olmert of acting illegally in a 2005 sale of Bank Leumi when he was finance minister. Olmert has denied wrongdoing.

The Israeli comptroller was also looking into the terms of Olmert's purchase of a Jerusalem apartment in 2004 and whether he appointed cronies to a business authority that year.

Olmert's office has reserved comment on the real estate deal pending an official approach by the authorities, but has denied any wrongdoing regarding appointments to an Israeli business authority while he served as industry and trade minister.

(Additional reporting by Steven Scheer in Jerusalem)

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Last updated:Wed Jan 3 04:10:28 2007