Israel's Ehud Olmert faces corruption probe

September 24, 2007

Tel Aviv - Israeli Prime Minister Ehud Olmert is under criminal investigation over his fraudulently purchase of an house in 2004.

The move came after a government watchdog concluded Olmert paid $325,000 below market value for the house.

The prime minister has protested his innocence, insisting the price was fair and the inquiry was "uncalled for".

But he promised to co-operate fully with the investigators.

"We are sure the investigation will clearly show that the purchase of the apartment by the Olmert family was made honestly, ethically and for an appropriate price," Olmert's office said in a statement.

Attorney General Menahem Mazuz confirmed that police would investigate what he termed the "Cremieux Street affair", referring to the address of the house bought by Olmert.

Olmert is already being investigated over separate allegations relating to the sale of Leumi bank in 2005.

Several senior officials were arrested as part of a police investigation into possible bribery over the sale.

Other politicians have also been blighted by serious allegations - earlier this year ex-President Moshe Katsav struck a plea bargain with the attorney general to avoid rape charges.

Under the plea, he is due to be charged with lesser sexual offenses and faces a suspended sentence.

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