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Israeli police quiz Olmert again on corruption

JERUSALEM
Fri Aug 29, 2008 3:29am EDT
Israel's Prime Minister Ehud Olmert attends the weekly cabinet meeting in Jerusalem August 24, 2008. REUTERS/David Silverman

JERUSALEM (Reuters) - Israeli police questioned Prime Minister Ehud Olmert for a seventh time on Friday as part of a corruption investigation that has jeopardized peace talks with the Palestinians and shaken Israel's political system.

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Olmert, who denies any wrongdoing, has pledged to step down once his centrist Kadima party chooses a new leader in a September 17 contest in which the leading contenders are Foreign Minister Tzipi Livni and Deputy Prime Minister Shaul Mofaz.

Micky Rosenberg, a spokesman for national police, said "the prime minister will be questioned for a seventh time" in a session that would last about two and a half hours.

Amir Dan, a spokesman for Olmert, said police were questioning him at his official residence in Jerusalem.

Israeli media said police would ask Olmert about suspicions he received a discount to buy an apartment in exchange for favors, and named cronies to a state business authority when he served as trade minister.

Olmert has also been accused of accepting cash envelopes from a U.S. Jewish fundraiser and submitting duplicate travel expense claims while serving in a previous government role.

If Olmert resigns, he would stay on as caretaker prime minister for the weeks it could take his successor to form a new government, which would likely further delay already halting U.S.-sponsored peace negotiations.

On a visit this week, U.S. Secretary of State Condoleezza Rice said she continued to aim for a peace accord before President George W. Bush leaves office in January, though many analysts are sceptical she can achieve a breakthrough.

(Writing by Allyn Fisher-Ilan; editing by Mary Gabriel)



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