Israeli PM faces other scandal investigations

MIDDLE EAST: Police are investigating Israeli Prime Minister Mr Ariel Sharon for involvement in three different affairs.

MIDDLE EAST: Police are investigating Israeli Prime Minister Mr Ariel Sharon for involvement in three different affairs.

Greek Island Affair - The main suspicion in this case is that real-estate developer Mr David Appel, who was indicted yesterday, paid hundreds of thousands of dollars to Mr Sharon's son, Gilad, to act as a consultant in a development project in Greece in the late 1990s. The allegation: Mr Appel believed Mr Sharon, who was foreign minister at the time, would use his influence to persuade Greek officials to allow him to build a resort on a Greek island.

Shell Companies Affair - A group of people assisting Mr Sharon in his bid for Likud leadership in 1999 are alleged to have set up a series of "shell companies" used to channel funds to his campaign - including donations from foreign sources - in violation of party financing laws. Mr Sharon's sons Gilad and Omri, who last year became a Likud member of parliament, have also been implicated in this affair.

The attorney general must now decide whether to press charges.

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Cyril Kern Loan Affair - Mr Sharon's sons allegedly used a $1.5 million loan from Mr Cyril Kern, a South African-based businessman and long-time family friend, as collateral to repay the illegal campaign contributions in the 1999 Likud leadership primary. The prime minister, who faces allegations of bribery in this case, has denied any knowledge of the loan. The attorney general must also decide on this case.