Olmert’s home at centre of latest corruption probe
A complaint filed by an investigative journalist alleged Olmert received a “significant discount” on the price in return for using his influence to speed up building permits for the contractor who sold him the home.
Olmert denied any wrongdoing in the case, one of several corruption probes that have plagued him since he took office last year.
“The attorney general decided to order police to open a criminal investigation into the Cremieux affair,” the justice ministry said, named after the street where Olmert bought the $1.2 million house in 2004.
Israeli media reports said $320,000 was knocked off the purchase price.
Olmert served as mayor of Jerusalem from 1993-2003.
Israel’s main government watchdog, the state comptroller’s office, first investigated the complaint and gave its findings to Attorney General Menachem Mazuz.
“This is a needless investigation,” said a statement issued by the prime minister’s office after Mazuz ordered the police probe. The price Olmert paid for the home, the statement said, was in line with market conditions at the time.
Police are already investigating Olmert’s role, as finance minister, in the 2005 privatisation of Benk Leumi, Israel’s second biggest commercial bank.
Suspicions in that case focus on whether Olmert tried to tailor the sale offer to give preference to a friend, who ultimately never bid on the bank.
Mazuz is also considering whether to instruct police to investigate whether Olmert, as industry and trade minister in 2003, appointed cronies to a government- funded business authority and helped secure official funding for a factory represented by his former law partner. Olmert has said the suspicions are baseless.
Olmert faces another possible blow when the Winograd commission files its final report on the conflict in Lebanon. A publication date has not yet been given.
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