THURSDAY, AUGUST 14, 2003
Sharon corruption probe gathers momentum
AP
JERUSALEM: Two corruption investigations against Ariel Sharon have picked up in intensity and public scrutiny in recent weeks after two years of tedious progress, raising for the first time the possibility that the Israeli prime minister could be forced out of office.
Yet most believe the cases against Sharon will eventually fizzle, as have others against Israeli leaders in recent years, after the attorney general declined to press charges.
Polls suggest two-thirds of Israelis believe Sharon is hiding something from the police, but almost as many say he shouldn't step down.
Sharon denies any wrongdoing. The investigations focus on allegations that he obtained an illegal loan during his 1999 primary election campaign - possibly in exchange for financial favors - and that he was bribed by an Israeli businessman to promote a real estate project in Greece while serving as foreign minister in the late 1990s.
The Israeli daily Haaretz reported Monday that the businessman, David Appel, will probably be indicted on charges of bribing Sharon. This does not necessarily mean Sharon will be indicted as Israeli law does not require an alleged bribe taker to be charged because a bribe giver is.
The Justice Ministry refused comment on the Haaretz report and on the case in general. Spokesman Jacob Galanti would only say the investigations are continuing.
Sharon's son Gilad is also being investigated. Causing a public outcry, he chose to remain silent when questioned by police late last month about the Greek real estate project and the 1999 campaign loan. His lawyer is appealing a court ruling requiring Gilad Sharon to surrender documents related to the case.
During the 2003 election campaign, Ariel Sharon accused his opponents of seeking to pervert Israeli democracy by bringing up the campaign loan. But this time he has been silent about the investigations.
By law, Sharon would have to resign if he were indicted, which could sidetrack the U.S.-backed "road map" plan for Israeli-Palestinian peace - which Sharon has tentatively backed.
Sharon has experienced the political wilderness before. In 1983, he was forced to resign as defense minister after an inquiry found him indirectly responsible for the massacre of hundreds of Palestinians in Beirut refugee camps by Israel's Christian militia allies during the 1982 Israeli invasion of Lebanon. For many years it was believed Sharon would never be prime minister because of that incident, but he gained the office in 2001.
The Sharon investigations moved into high gear late last month following Israeli newspaper reports that Israeli and foreign businessmen moved large amounts of cash into accounts controlled by Sharon or his son Gilad.
Yediot Ahronot reported that Gilad Sharon was paid a monthly consulting fee of US$20,000 by Appel, the businessman, to promote a tourist project in Greece and other foreign real estate ventures. In addition, the newspaper said, Appel undertook to channel US$400,000 to Sharon's Sycamore Ranch in southern Israel in connection with Sharon's 1999 Likud primary campaign.
Altogether, it said, the Sharon family stood to earn US$3 million once Appel's foreign real estate projects were approved.
Haaretz said Sharon had obtained a US$1.5 million loan for his 1999 primary campaign - possibly from an Austrian businessman seeking to win government approval for a floating casino off the southern city of Eilat.
Israel's state comptroller had ordered an earlier campaign loan repaid on the grounds that it violated election law, and Sharon's sons, Gilad and Omri - now a member of parliament - arranged for the new loan, according to Justice Ministry documents leaked to Haaretz.
Even if prosecutors were to seek Sharon's indictment, Attorney General Elyakim Rubinstein might rule otherwise. In 1997, Rubinstein closed a fraud investigation against then-Prime Minister Benjamin Netanyahu for lack of evidence, and last month he closed a conflict-of-interest file against Sharon although the state comptroller indicated he should be prosecuted.
Despite the inquiries, a weekend poll in Yediot showed 60 percent of Israelis consider Sharon a credible prime minister and 64 percent said he should not resign over the corruption allegations. Still, 69 percent said that they believe he has something to hide from the police. The survey of 500 respondents had a margin of error of 4.5 percentage points.
Copyright © 2003 Times Internet Limited. All rights reserved.