National Fraud Unit to probe Olmert

Major General Yohanan Danino, head of the Israel Police's Investigations and Intelligence Office, on Tuesday commissioned a special investigation task force from the National Fraud Unit to look into Prime Minister Olmert's acquisition of his apartment on Jerusalem's Carmieux Street.

The unit's deputy chief, Commander Nahum Levy, is to lead the investigation.

On Monday, Attorney General Menachem Mazuz created a political firestorm when he made public his plans to launch a criminal investigation into Olmert's apartment.

The prime minister stands accused of acquiring his apartment in a development project in the German Colony neighborhood in Jerusalem at an estimated $320 million discount in return for using his influence as minister of national infrastructure to accelerate the pace of the project.

The Prime Minister's Office has said that Olmert was determined to cooperate with the police investigators. People close to Olmert, however, are not hiding their lack of satisfaction with Mazuz's decision.

"We are certain and convinced of the complete legality of the acquisition of the Olmert family apartment. We regret the decision to open the investigation. This investigation is unnecessary," the Prime Minister's Office said in a statement.

In addition to the apartment investigation, the prime minister is also being investigated for his dealings with Bank Leumi.

Olmert is scheduled to appear for questioning for the first time in connection with this case after the High Holydays. The chief National Fraud Unit, Brigadier-General Shlomi Ayalon, and Chief Superintendent Eran Kamin are to lead the investigation.

The prime minister suffered an additional blow shortly after the investigation into his apartment was announced Monday when Attorney General Mazuz declared that Olmert's good friend, former Finance Minister Abraham Hirchson, will be charged with theft as well as other serious crimes—pending a hearing.