Police Launch Criminal Probe Against Olmert on Bank Leumi Sale 19:29 Jan 16, '07 / 26 Tevet 5767 by Gil Zohar

State prosecutor Aran Shendar ordered Israel Police to launch a criminal probe Tuesday against Prime Minister Ehud Olmert concerning the sale of the government's shares in Bank Leumi.

Olmert, it is alleged, used his former position as finance minister in order to help two friends who were interested in buying the shares. Olmert has denied interfering in the tender for the state's controlling interest in the bank.

The Prime Minister was notified of the prosecution's order on Tuesday afternoon.

The investigation will focus on suspicions that Olmert tried to steer the tender for the sale of Bank Leumi in order to help Australian real estate tycoon Frank Lowey, a close personal associate, and Daniel Abrams.

Police opened an unofficial "inspection" into the suspicions two months ago. Shendar decided to open a criminal probe after Attorney-General Menachem Mazuz removed himself from the case due to his sister Yemima Mazuz's employment as the Finance Ministry's legal adviser.

Police Commissioner Moshe Karadi is expected to decide Tuesday who will conduct the investigation along with the prosecution's finance department.

Suspicions that Olmert, in his former role as finance minister, was improperly involved in the Leumi sale first came to light in a report by State Comptroller Micha Lindenstrauss. The main evidence against him is apparently the testimony of Accountant-General Yaron Zelikha.

An opinion prepared by attorney Michael Karshan of the Justice Ministry recommended a criminal investigation against Olmert in the Leumi affair, on suspicion of fraud, breach of trust and other crimes. However, Shendar then decided that more information was needed, and asked the police to carry out certain inquiries as part of the process of deciding whether to open a formal investigation.