Israel Leader's Troubles Mount As Bush Arrives

By JOSEF FEDERMAN, Associated Press
May 14, 2008

JERUSALEM — As President Bush arrives in Israel to help celebrate the Jewish state's 60th birthday, he will find his host, Prime Minister Olmert, in deep trouble.

A widening investigation into the Israeli leader's financial dealings is turning up evidence that those close to the probe say is giving Mr. Olmert good reason to worry.

Police say they have enough material for an indictment. The two main witnesses — a despondent attorney who was seen wandering along Israel's busiest highway on the day he was questioned and an American rabbi who has been accused of sending thugs to collect debts — are corroborating each other's testimony about delivering payments to Mr. Olmert, officials told the Associated Press.

The case — which revolves around suspicions that Mr. Olmert received hundreds of thousands of dollars in illegal contributions — is more substantive than any of the four other high-profile probes that have plagued his two-year tenure as prime minister, several officials close to him said. The officials spoke on condition of anonymity because the investigation is ongoing.