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Businessman says he gave Israeli leader thousands in cash
2008-05-27
JERUSALEM - A New York businessman Tuesday said that he gave Israeli Prime Minister Ehud Olmert $150,000 in cash, checks and loans to finance overseas trips, posh New York hotel rooms and struggling political campaigns. In a rare public deposition before a three-judge panel, Morris Talansky said he got nothing in return from Olmert, but told Israeli prosecutors that he was "very, very uneasy" about the large amounts of cash he gave to Olmert over the years, but trusted a politician he revered. "Cash disturbed me," Talansky said. "I couldn't understand it, and I accepted the answer simply because I saw something bigger, hopefully, out there." Talansky, 75, is a key figure in the unfolding political corruption investigation into whether Olmert accepted bribes before he became prime minister in 2006, and his unusual testimony in open court exposed the depth of the Israeli leader's political troubles. Olmert has denied the allegations but said he'll step down if he's indicted. His departure under a cloud would be a blow to the Bush administration's efforts to revive peace talks between Israel and the Palestinians, and it also could interfere with Israel's indirect negotiations with longtime enemy Syria . After the hearing, State Prosecutor Moshe Lador said it was "too early" to draw any conclusions about a possible indictment of Olmert. "This whole investigation is not at the end, but in the middle," said Lador, who led Tuesday's questioning of Talansky. "No decisions have been made, no decisions are now even considered." Olmert's attorney's called Talansky's sworn testimony "twisted." Yet Talansky portrayed himself as a well-intentioned businessman who did all he could to help Olmert, whom he described in almost reverential tones. On Tuesday, Talansky said he wanted to confront Olmert to voice his "anger" about his conduct. "This is no way to build a relationship, to run a country, to be a high official," Talansky said. "By taking cash all the time." Talansky's rare open court deposition posed significant new questions about Olmert's political dealings before he became prime minister. After he'd given Olmert cash for years, Talansky said, the Israeli leader asked two prominent American businessmen to talk to him about Talansky's struggling mini-bar business. State prosecutors presented a letter that Olmert wrote to American casino billionaire Sheldon Adelson on Talansky's behalf three weeks after Talansky paid a $4,000 hotel bill for Olmert in 2005. Around the same time, Olmert wrote a letter to the defense minister in Chile about another investment Talansky was involved with that sold satellite space to nations around the world. Talansky said he knew nothing about Olmert's letter to Chile and said nothing the Israeli leader did led to any success for his mini-bar business. "I said to myself, never go to a politician for business," said Talansky, who adamantly denied that he gave Olmert any money with the hope of getting anything in return. In all, Talansky estimated that he'd given Olmert $150,000 in cash, checks and loans over 15 years. To date, he said, Olmert hasn't repaid the loans. In one case, Talansky said, Olmert asked him for a $25,000 loan because he was going on an Italian vacation. The court allowed state prosecutors to question Talansky in court to ensure that his testimony is documented before he returns to the United States this week. Talansky has agreed to return in July when Olmert's attorneys, who asked for more time to prepare, will question the businessman. After the eight-hour hearing, Olmert attorney Eli Zohar called Talansky's testimony was incomplete. "Come back in July and you will see what picture you will get from the whole story," said Zohar. "It's twisted somewhat."
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