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Gloom in Israel as Halutz resigns and Olmert slammed with legal suit

Wednesday 17-January-2007

NAZARETH (PIC)– The resignation of the IOF chief of staff Dan Halutz just hours after Israeli comptroller Eran Shendar accused Israel’s premier Ehud Olmert of grave corruption send shivers in the political leadership in Israel.

The military echelon in Israel suffered a set back after Halutz’s surprised resignation that sent the Israeli military institution into unprecedented crisis since the Hebrew state was established in 1948.

According to Hebrew sources Halutz relinquished his post after an internal investigation probing Israel’s war on Lebanon last summer proved his responsibility over the humiliating defeat sustained by the IOF troops at the hands of Hizbullah fighters.

This “shell bomb” resignation harmonizes with more scandals engulfing Israeli officials in the political echelon including Israeli president Moshe Katsav who faces rape and sexual harassment charges and Israeli premier Ehud Olmert who was recently slammed with corruption charges over his role in the privatization process of the Leumi Bank.

Amir Peretz the Israeli war minister is also expected to be forced to abandon his post over the IOF troops’ failure in Lebanon and Gaza Strip.

Although they had politically failed while in office names of former Israeli ministers Binyamin Netanyahu of the Likud party and Ehud Barak of the Labor party surfaced as the most likely candidates to lead the next Israeli government in the event of Olmert’s resignation.

Olmert’s role in Leumi Bank investigated:
On Tuesday Israel’s attorney-general filed corruption charges against Olmert over his role in the privatization of Leumi Bank and for tampering with conditions of the privatization tender to serve his Austrian friend and business tycoon Frank Loy.

Security around the star witness in Olmert’s case Yaron Zuliekha the chief accountant in the Israeli finance ministry who filed the charges against the premier before the comptroller’s office was intensified in the wake of death threats he received from unknown persons.

Former Israeli premier Ariel Sharon was also slammed with corruption charges while in office as he was accused of receiving millions of dollars to support his election campaign from a South African businessman. 

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