Olmert told to resign or be sacked

Israeli premier Ehud Olmert, mired in corruption claims, was warned to step down or face being forced from office today.

Defence minister Ehud Barak said he would withdraw his Labor party and topple the coalition government if Mr Olmert refused.

The ultimatum increased the growing pressure on Mr Olmert to resign in the wake of a New York businessman’s evidence that painted him as a money-hungry politician with a love for luxury.

It also cast doubt on Israel’s efforts to reach peace with Syria and the Palestinians.

Mr Olmert has denied any wrongdoing and said he would resign only if he is charged.

Israeli prosecutors are investigating tens of thousands of dollars in donations collected by Mr Olmert before becoming prime minister in 2006. They suspect he may have violated campaign finance laws or accepted bribes.

Yesterday the key witness in the case, Morris Talansky, said he personally gave Mr Olmert $150,000 (€96,000) over 15 years, often in cash-stuffed envelopes.

Mr Talansky, an American businessman and philanthropist, also discussed Mr Olmert’s love for luxury hotels, first-class travel and expensive gifts.

There was no immediate reaction from Mr Olmert. But earlier and aide said he “doesn’t have any intention to resign or to step down temporarily, even if Barak asks him to.”

Israeli newspapers were plastered with quotes from Mr Talansky’s evidence and headlines attacking Mr Olmert.

Mr Talansky said he received nothing in return for the money.

He said he overlooked questions about Mr Olmert’s request for cash due to his belief in Mr Olmert’s ability to unite the Jewish people.

Mr Talansky said he gave Mr Olmert money beginning in 1991. Mr Olmert became Jerusalem mayor in 1993, serving for a decade at the end of which he was named ministry of industry and trade.

Mr Talansky’s testimony is the latest blow to Mr Olmert, who has been deeply unpopular since Israel’s inconclusive war against Hezbollah guerrillas in Lebanon in 2006.

Mr Olmert has set a year-end target for reaching a peace deal with the Palestinians. Last week, he also announced the resumption of peace talks with Syria after an eight-year break. Now, both peace efforts are in jeopardy.