Israeli PM under pressure to step aside

Israeli prime minister Ehud Olmert came under pressure from his own party today to step aside after the attorney-general announced…

Israeli prime minister Ehud Olmert came under pressure from his own party today to step aside after the attorney-general announced he was considering indicting him on fraud and bribery charges.

"The prime minister must take leave. There is no other option," Israeli Foreign Minister and Kadima party leader Tzipi Livni told party members at an emergency meeting near Tel Aviv.

Mr Olmert's advisers said the prime minister, who resigned in September but continues serving in a caretaker capacity until a new government is formed after a February 10th election, had no intention of leaving office early.

Mr Olmert's decision to stay in the job could set the stage for a showdown with Ms Livni, who is in the midst of a tough election campaign to succeed him as prime minister after failing to form a new coalition last month.

If Mr Olmert stepped down by taking a "leave of absence", Ms Livni would then take over as caretaker premier, giving her a potential boost going into election-day.

Ms Livni first had a public falling out with MrOlmert more than a year ago, calling for his resignation after a commission roundly criticised his handling of the 2006 war against Lebanon's Hezbollah guerrillas.

Then too, he refused to step aside, and Ms Livni remained in government in an uneasy partnership. As Mr Olmert's deputy, she sits next to him in cabinet meetings.

The Justice Ministry said yesterday attorney general Menachem Mazuz told Mr Olmert he was considering bringing criminal charges against him over allegations he submitted duplicate bills to Jewish organisations abroad and inflated travel costs while serving as Jerusalem mayor and another cabinet post.

The Justice Ministry said the alleged scheme allowed Mr Olmert to raise some $85,000 to fund private trips for him and family members. Israeli media said the charges carry a maximum jail sentence of seven years.

Ms Livni said Mr Olmert faced a "test of values and morality" and should battle the charges as a civilian, not while serving as Israel's caretaker prime minister.

Mr Olmert has also been questioned for allegedly accepting envelopes stuffed with cash from an American Jewish fundraiser and using a cabinet post to promote a friend's business interests.

Reuters