MIDDLE EAST: Israel's attorney general lifted the threat of indictment against Mr Ariel Sharon yesterday in a scandal over illegal campaign funds but charged the prime minister's son, Omri, with fraud and other crimes in the same case.
The decision closes the second of three corruption investigations which have dogged Mr Sharon and threatened to derail his "disengagement plan" to pull Israeli settlers out of the Gaza Strip. But there is a widespread view within Israel's legal system and among the public that Mr Sharon escaped for political reasons and that his 40-year-old son and political adviser has accepted responsibility on his behalf.
Omri Sharon faces up to seven years in jail if convicted of charges over the alleged laundering of illegal campaign contributions through front companies used to fund his father's successful bid for the leadership of the Likud party six years ago.
A criminal investigation was launched after the state comptroller's office uncovered the laundering of illegal campaign funds and suggested there may have been criminal behaviour by the prime minister, his sons, Omri and Gilad, and leading political aides. Mr Sharon denied knowledge of the transactions and blamed Omri. His eldest son remained silent during police questioning on the affair.
As Omri is an MP, the attorney general, Menahem Mazuz, is expected to ask parliament to lift his immunity.
The attorney general also indicted one of the companies allegedly involved in the money laundering, Annex Research, and its director, Gabriel Manor.
Mr Mazuz said he was not persuaded of the prime minister's innocence in the affair, but there was not enough evidence to indict him.
Cases were also dropped against two of Mr Sharon's close aides, Dov Weisglass and Uri Shani.
But a left-wing MP, Ran Cohen, told the Israeli newspaper, Ma'ariv, that he believed Mr Sharon must have known about the illegal funds if his son was involved. "An indictment against Omri Sharon leads to Ariel Sharon," he said.
Mr Sharon and his sons still face an investigation into accusations that a $1 million loan from a British businessman living in South Africa was allegedly illegally used to repay the illicit campaign contributions after they were uncovered.