War and Piece:

May 27, 2008

Ha'aretz on American businessman Morris Talansky testimony in Olmert corruption probe today:

Morris Talansky, the American-Jewish businessman suspected of making illicit cash transfers to Prime Minister Ehud Olmert, said in a court testimony in Jerusalem on Tuesday that he had transferred Olmert some $150,000 over 15 years, and that Olmert had tried to aid a Talansky business venture by introducing him to several American billionaires.

It remained unclear, however, if Talansky's day-long testimony in the Jerusalem District Court had significantly helped prosecutors near proof of a "smoking gun" of evidence of bribery against Olmert. Although he admitted to having given Olmert cash-filled envelopes, Talansky maintained that he had expected nothing in return.

The businessman told the court that Olmert had asked him for donations for his 1993 Jerusalem mayoral campaign and throughout his tenure as industry and trade minister. He said cash-filled envelopes were transferred through Olmert's former bureau chief, Shula Zaken, each one containing between $3,000 and $8,000, and that the transfer were "legitimate." He estimated having transferred Olmert roughly $150,000 over 15 years.

Olmert volunteered to contact three billionaires, including Plaza Hotel owner Yitzhak Tshuva and Las Vegas casino mogul Sheldon Adelson, to try to drum up business for a hotel minibar venture run by Talansky. But Talansky said the offer did not help, and Adelson slammed down the phone on him. [...]

Prosecutors are intent on determining whether the money Talansky donated to Olmert - suspected of reaching sums of up to $500,000 - amounted to bribery. Olmert, who stated publicly that he only received funds for campaign purposes, has promised to step down if indicted for bribery.

The unpaid loans, Talansky told Jerusalem District Court, included a $25,000-$30,000 loan used for a 2004 family vacation to Italy. Olmert never paid him back, Talansky said.

The businessman also mentioned a second loan for $15,000, which Olmert asked for during a stay at the Regency hotel in New York. Olmert refused to take a check and asked for cash, Talansky said.

Talansky said he walked to a bank four blocks away and withdrew the money. When he handed over the cash to Olmert, he asked to be repaid as soon as possible. "Famous last words," Talansky said, explaining that he was never paid back. [...]

Talansky also testified that he had asked Olmert, who was a member of Likud at the time, why he didn't raise money through the party's fundraisers in the United States. Olmert told him that should he do so, the money would go straight to the party, Talansky said.