MIDDLE EAST: The political fortunes of Israeli Prime Minister Mr Ariel Sharon, who less than a year ago led the centre-right Likud party to a landslide victory, reached a new low yesterday, after a Tel Aviv court indicted a well-known Israeli businessman for trying to bribe the Israeli leader.
While opposition lawmakers bayed for his resignation, observers said that Mr Sharon's reputation might have been sullied by the allegations, but it was too early to say if he would ultimately have to resign since prosecutors would have to show that he knowingly took money for political favours.
The indictment was served against Mr David Appel, a real-estate developer and powerbroker within the Likud, for allegedly paying hundreds of thousands of dollars to Mr Sharon's son Gilad in 1999, to work as a consultant in the purchase of a Greek island where Mr Appel hoped to build a resort.
According to the allegations, Mr Appel paid out close to $700,000 to Gilad Sharon and to the Sharon ranch in southern Israel, in the hope that Mr Sharon, who was foreign minister at the time, would then help him to lobby Greek authorities.
According to the indictment, in what has become known as "The Greek Island Affair," Gilad Sharon did not possess the "relevant professional qualifications" for the job.
Mr Appel is also being charged with offering a bribe to Mr Sharon, prior to and during his term as premier, to help rezone land near Tel Aviv for property development, in exchange for his backing in two crucial primary campaigns for the Likud leadership. Neither deal went through.
Mr Appel, Mr Sharon and his son have denied the allegations.
The indictment also mentions Mr Sharon's deputy, Mr Ehud Olmert, alleging that Mr Appel tried to bribe him as well over the Greek project. Mr Olmert was mayor of Jerusalem at the time.
If Mr Sharon is indicted - he is also being investigated in connection with illegal campaign financing - he will almost certainly have to step down, because of a Supreme Court precedent on the matter. But prosecutors will first have to decide whether Mr Sharon willingly accepted the bribe offered by Mr Appel. Sources in the State Prosecutor's office said yesterday that a decision on whether to charge the prime minister would be taken within weeks.
Mr Sharon was quoted as saying he had no intention of resigning, but his vulnerability was borne out by the fact that not a single Likud minister was prepared yesterday to back him publicly. Rivals within the ruling party have begun to jockey for position, should the prime minister be forced to resign.
A number of prominent members of the opposition Labour Party called on Mr Sharon to quit.
"This is very sad, very grave, but this is the reality of Israel in 2004. There's Sopranos on television, and there's Sopranos in Israel," legislator Mr Ophir Pines-Paz said.
Justice Minister Mr Yosef Lapid, who is also leader of the centrist Shinui party, a key partner in Mr Sharon's ruling coalition, said the prime minister and Mr Olmert would have to step down if indicted.