Police Ask Court to Extend Remand of Tax Authority Head 23:19 Jan 02, '07 / 12 Tevet 5767 by Hana Levi Julian

Prime Minister Ehud Olmert's Bureau Chief is restricted to house arrest. Her brother, a Jerusalem City Councilman is in custody, along with the Director-General of the Israel Tax Authority.

Prime Minister Ehud Olmert’s Bureau Chief Shula Zaken was sentenced to ten days' house arrest by a Tel Aviv magistrate Tuesday night after being questioned by the fraud squad at its Bat Yam headquarters for more than eight hours.

Zaken was required to post a NIS 50,000 bond to secure her release. She was barred from contacting the Prime Minister's Office for an additional 14 days after the house arrest ends, her passport was confiscated and she was forbidden to leave the country.

Zaken's brother, Yoram Karashi, will remain in police custody for nine days, according to the Ynet news service. Karashi is a Jerusalem City Councilman and Likud Central Committee member.

Israel Tax Authority Director-General Jack Matza was remanded for six days in the case. Businessman Kobi Ben-Gur will remain in custody for nine days. Matza's predecessor, Eitan Rov and businessmen Simu Tubol were still awaiting a decision by the magistrate late Tuesday night after being questioned as well.

All are suspected of accepting or arranging bribes from political figures and businesspeople in return for tax breaks and other favors. Tubol, a close friend of Olmert’s bureau chief, is being investigated for the second time in a year. He was questioned several months ago over allegations of tax evasion.

The National Fraud Investigations Unit raided 30 homes on Tuesday morning, the culmination of a ten-month investigation into allegations of corruption in the Tax Authority.

Zaken has been secretly under investigation for months. Her telephone conversations were recorded by wiretapping at her home, a fact revealed during a separate trial – court proceedings against former Olmert appointee and Kadima Justice Minister Haim Ramon. Zaken’s conversations with the IDF commander of Ramon’s accuser are being used as evidence in the sexual assault case.

Another top Kadima official under investigation in a separate case is Finance Minister Avraham Hirschson, who is suspected of failing to report a crime. Hirchson was questioned by Israel Police on allegations that he turned a blind eye to embezzlement at the “Nili” association.

Five former employees of the non-profit organization were arrested Tuesday morning on charges of involvement in a theft of some NIS 5.5 million from the association.

The Movement for Quality Government has demanded that Attorney General Menachem Mazuz and Civil Service Commissioner Shmuel Hollander suspend all the officials who are under investigation.

The system is broken due to Israel being run by an oligarchy of the rich and corrupt. As reported on in the Israeli press basically 18 interlocking families control most of the wealth and power in Israel.