Former Prime Minister Ehud Olmert was indicted on Thursday on new corruption charges for allegedly seeking bribes in a wide-ranging real estate scandal that dwarfs the numerous other cases in which he's accused. According to the indictment, millions of dollars illegally changed hands to promote a series of real estate projects, including a controversial housing development in Jerusalem that required a radical change in zoning laws and earned the developers tax breaks and other benefits. Jerusalem residents have long suspected that the hulking Holyland housing development, built on a prominent hilltop, was tainted by corruption, and Thursday's indictment against Olmert cemented those doubts.
The alleged crimes took place while Olmert was mayor of Jerusalem, a position he held before becoming prime minister in 2006. Olmert has denied charges on all counts.
Olmert is already standing trial on separate charges of accepting illicit funds from an American supporter and double-billing Jewish groups for trips abroad before he became prime minister.
He has denied those charges, too, and claims no wrongdoing during a three-decade political career dogged by suspicions of corruption, but no convictions. The accusations, however, forced Olmert to resign in 2009 after a three-year term as prime minister.
The 87-page indictment also ensnares other powerful Israeli figures. Former Jerusalem Mayor Uri Lupolianski, who succeeded Olmert, was charged in the Jerusalem real estate scandal. Danny Dankner, the former chairman of Israel's second-biggest bank, Bank Hapoalim, was charged with offering hundreds of thousands of dollars in bribes to a government official to rezone land for one of his businesses. Olmert's former bureau chief, Shula Zaken, who has been implicated in several of the corruption scandals involving her former boss, was also indicted.
The Holyland case broke two years ago after a businessman involved in the Holyland project who became a state witness. The indictment accuses Olmert of seeking money, through a middleman, from Holyland developers to help out his brother, Yossi, who fled Israel because of financial problems. According to the indictment, Yossi Olmert received about $100,000.
The former prime minister is also accused of asking the middleman to help out city engineer Uri Sheetrit, who also had money woes. Sheetrit later dropped his opposition to the broad expansion of the Holyland complex, which burgeoned from a small development into a massive, high-rise project that sticks out from its low-rise neighbors. According to the indictment, Sheetrit received hundreds of thousands of dollars in bribes.
The indictment further states that real estate developer Hillel Charney, together with the state's witness, whose name is under a gag order, gave Olmert and Zaken more than NIS 1.5 million. The money was allegedly used to fund Olmert's campaign and to repay Zaken's debts.
In addition, the developers allegedly gave NIS 1.5 million to Yad Sarah, a non-profit organization founded by Lupolianski, in exchange for help in advancing the Holyland project during the latter's stint as mayor.
Olmert's attorney, Eli Zohar, told Army Radio Thursday that the indictment was out of line and that it was only filed as an effort to influence other cases currently pending. "This is a long and cumbersome indictment -- it seems delusional," Zohar said. "The entire case revolves around the unclear testimony of a state's witness."
Olmert's media consultant Amir Dan issued a statement saying, "Olmert has clearly stated that he never took bribes, neither directly nor indirectly. He supported the Holyland project from the start, believing that the project would help prevent wealthy secular residents from leaving Jerusalem."
"Filing the indictment at this particular timing, during the course of an ongoing trial against him [Olmert], violates any moral code of basic decency and is a scandal in itself. This is a despicable attempt to influence the court, which is currently discussing Olmert's case and is about to make a ruling," Channel 10 quoted Dan as saying.
Dan added that Olmert was not given an opportunity to defend himself, and insisted that his client was innocent. "The indictment is based on Arabian Nights stories invented by the state's witness. That man didn't think twice before hiding his attempts at extortion from the police or the prosecution."