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Olmert set to step down?
28/05/2008 10:14 - (SA)
Jerusalem - Israeli Defence Minister Ehud Barak called a surprise news conference on Wednesday, raising speculation he will demand Prime Minister Ehud Olmert step aside after damaging testimony from a US businessman in a corruption case.
Barak's Labour Party is the main partner in Olmert's fragile governing coalition and a new election, certain to disrupt Israel's peace talks with the Palestinians, would be likely if it bolted.
"Either Olmert suspends himself or the Labour Party must leave the government," senior Labour legislator Danny Yatom said amid news reports that Barak would make that demand.
A spokesperson for Barak, a former prime minister, said he
would hold a news conference in Israel's parliament at 13:30 (10:30 GMT). She gave no details on what he planned to say.
Cash-stuffed envelopes
US businessman Morris Talansky testified on Tuesday that
he gave Olmert $150 000 in cash-stuffed envelopes, including
personal loans that were never repaid, over a 15-year period
before the veteran politician became Israel's leader.
Olmert, whose defence attorneys will cross-examine Talansky
only in July, has acknowledged receiving money from the New
York-based businessman but said the funds were legal election
campaign contributions.
Denying any wrongdoing, he has said he would resign if
indicted.
"It looks like this could be it for Olmert. Nothing can
rescue him," said an Israeli official of the corruption
allegations.
- Reuters
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