Israeli PM: I'll Resign If Indicted

Israeli Prime Minister Ehud Olmert, responding to fresh accusations that he illegally accepted hundreds of thousands of dollars from a U.S. citizen, on Thursday said he will step down if he is indicted.

Olmert said he never took illegal campaign contributions, denying allegations in a police investigation against him.

Olmert made his statement in a nationally televised speech from his official residence late Thursday after a gag order was lifted from the case. According to police suspicions, Olmert accepted hundreds of thousands of dollars in illegal contributions from a U.S. citizen, Morris "Moshe" Talansky.

In his statement, Olmert said a lawyer handled his finances, and everything was legal. "I am looking at all of you in the eye, and I say I never took bribes, I never took a penny for myself," he said.

He said he would not fight to stay in office if he is charged.

"I was elected by you, citizens of Israel, to be the prime minister and I don't intend to shirk this responsibility. At the same time, and even though the law does not require me to do this, I will resign from my job if the attorney general decides to issue an indictment against me."

Israel's Channel 10 TV reported Thursday that Talansky was a middleman for illegal campaign contributions, and that he readily told Israeli interrogators everything he knew about the case.

Israel's Channel 2 TV said the suspicion is that Olmert received hundreds of thousands of dollars from Talansky in cash in a series of meetings, while Olmert was Jerusalem mayor. Police said they didn't know how they money was used, according to Channel 2.

Even before the gag order was loosened, Olmert's opponents were calling on him to resign. Olmert is the target of several other investigations, but he has never been charged or convicted. He denies any wrongdoing.

If Olmert is indicted, he would probably have to resign, though a decision on whether to indict is likely to take at least several weeks, if not months. Israeli law restricts how much politicians can get from donors.

The latest case is the fifth high-profile probe involving the Israeli leader whose popularity has badly suffered because of the repeated charges of corruption.

Though Olmert's office has predicted he will weather the latest storm, the case threatens to further weaken his hold on power and potentially derail peace talks with Palestinians.

Olmert, a former Jerusalem mayor, was elected prime minister two years ago.

Olmert is already a suspect in several corruption affairs involving real estate deals and questionable political appointments. He has been questioned several times in the past by police but has never been charged.

Israel's attorney general has ordered two criminal investigation into suspicions that Olmert acted improperly while he was trade minister. He is also suspected of improprieties in the purchase of a house in Jerusalem.

In November, police recommended closing another case involving allegations that he tried to steer a government bank sale in the direction of supporters.

Some of Olmert's close political allies have also had legal troubles. His finance minister had to step down under embezzlement suspicions, and another - now the country's vice premier - was convicted of sexual misconduct for forcibly kissing a female soldier.

Moshe Negbi, an Israeli legal expert, told Israel Radio that Olmert could get seven years in jail if convicted of taking bribes.