JERUSALEM, Sept. 24, 2007
Israeli Cops Eye P.M.'s House Purchase
Olmert Bought Jerusalem Home Well Below Market Value; Proclaims Innocence
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Israeli Prime Minister Ehud Olmert during the weekly cabinet meeting in Jerusalem, Sept. 23, 2007. (AFP)
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Jews praying at the Western Wall of the second temple in Jerusalem earlier this month. (AP Photo/Marta Ramoneda)
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Israel's state comptroller, a government watchdog, has already investigated allegations that Olmert bought the house at a price significantly below market value, opening suspicions of fraud and bribery.
If indicted, he would be forced to step down, reports CBS News correspondent Robert Berger.
Olmert declared his innocence and insisted the price he paid was fair.
"We are absolutely convinced of the integrity of the Olmert family's purchase of the house," the statement said. "This investigation is uncalled for."
He promised to "cooperate fully" with the investigation.
In other developments:
Olmert has been dogged by corruption allegations throughout his long political career but has never been convicted. He has consistently denied any wrongdoing.
The comptroller concluded that Olmert paid $325,000 below market value for the house.
"We are sure the investigation will clearly show that the purchase of the apartment by the Olmert family was made honestly, ethically and for an appropriate price," Olmert said in his statement.
The intellectuals signing the truce-with-Hamas petition include the internationally acclaimed Amos Oz, A.B. Yehoshua and David Grossman.
Israel has no contacts with Hamas, an Islamic group officially dedicated to its destruction. Palestinian militants fire near-daily rocket barrages into Israel from Gaza, where Hamas seized control in June. Though Hamas has for the most part not been directly involved in the attacks, it has done nothing to halt the fire, and Israel says it holds the group responsible.
"We are talking about a truce and negotiations like we had (throughout) history with enemies much fiercer and more dangerous than Hamas," A.B. Yehoshua told Israel Army Radio. "There were cease-fires with Egypt when Egypt wanted to destroy us and announced it openly. People forget that."
"We are talking here about a truce ... Truces precede recognition," he said. "Truces are forged between the bitterest enemies."
Interior Minister Meir Sheetrit, a member of Olmert's Kadima Party, rejected the writers' demand for a truce.
"If an organization wants to destroy us as part of its ideology, it can't be a partner for peace talks," Sheetrit said, speaking on Army Radio. "Hamas must understand - the day you decide you want peace and stop thinking about destroying the state of Israel, we will say, 'Welcome, let's talk.' But so long as you want war, you will receive war twice over."
Adopting the writers' demand would be counterproductive, Israeli Foreign Ministry spokesman Mark Regev said.
"The position of the government of Israel and that of the European Union, Canada and the United States is that we must engage with the Palestinian moderates," he said. "Giving recognition and legitimacy to Hamas can only strengthen the extremists and undermine the moderates."
© MMVII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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- "Israeli Cops Eye P.M.''s House Purchase"
Hey, we saw this bribing scam already. The California representative is locked in the country club right now for the same thing, isn''t that right "Duke"? - Reply to this comment
How gold pays for 
