Bribe Scandal Threatens Sharon’s Premiership

David Appel, a key behind-the-scene figure in the right-wing Likud party, was indicted by Tel Aviv Magistrates court for giving Sharon, his son Gilad and deputy Ehud Olmert hundreds of thousands of dollars to promote a huge tourism project, reported Israeli Haaretz newspaper.

The so-called "Greek Island affair" took place in the late1990 s when Sharon was the country’s top diplomat in the right-wing government of Benjamin Netanyahu, while Olmert was the mayor of occupied Jerusalem.

In his capacity as foreign minister Sharon, the indictment sheet said, tried to help win Greek government approval for Appel’s plan and helped the Israeli tycoon in real estate dealings "before and after becoming prime minister".

"During [1998-99] … Appel gave Ariel Sharon a bribe in recognition of activities connected to the fulfillment of his public positions," said the indictment, a copy of which was obtained by Haaretz.

The charge sheet also said that Olmert hosted an event in honor of the Athens mayor to help advance the Apple’s ambitions.

The indictment further implied that Sharon and Olmert were "active participants in the bribery deals", the Israeli paper said.

The State Prosecutor’s Office said Sharon’s son Gilad "stood to earn good money from Appel’s project".

"Appel hired Gilad, ostensibly to be a marketing advisor on the Greek island project, even though he knew that Gilad did not have the necessary experience or skills," it said.

The charge sheet indicated that $100, 000had been actually paid out to Gilad and NIS2 . 6million was transferred to a ranch owned by Sharon.

Following the collapse of the project, Appel would have continued to pay Gilad tens of thousands of shekels for help in other property deals in Israel.

‘Political Earthquake’

The new scandal sent shockwaves in Israel as the future of the Sharon’s premiership hang in the balance.

Labor legislator Ophir Pines-Paz described the affair as an unprecedented "political earthquake".

Politicians have said Sharon himself could face charges in the future, and would then be forced to step down.

"This is very sad, very grave, but this is the reality of Israel in 2004 ," said the legislator.

Labor MK and former cabinet minister Avraham Shohat also called for Sharon’s resignation, Haaretz said.

"He should already have resigned in the light of earlier events, what happened today is just an extra. He is polluting the atmosphere."

There were signs within Likud circles that the party was preparing for the possibility that Sharon’s premiership might not last out the year.

Sharon was grilled by Israeli police last October over a simmering corruption scandal involving his two sons.

He had been accused of using a1 .5-million-dollar loan from South African businessman Cyril Kern to return contributions for his 1999 campaign for the Likud leadership.