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Pressure mounts on Olmert to quit

— PHOTO: AP

Combative: Israel’s Defence Minister Ehud Barak on Wednesday issued an ultimatum to Prime Minister Ehud Olmert.

DUBAI: A corruption scandal is threatening the survival of the Israeli government after Defence Minister Ehud Barak urged Prime Minister Ehud Olmert to resign or step aside.

Mr. Barak belongs to the Labour Party, which is allied to Mr. Olmert’s Kadima. A pullout by Labour was likely to result in the fall of the Olmert government. “The Prime Minister needs to disconnect himself from the day-to-day management of the government,” said Mr. Barak. Mr. Olmert has been accused of taking $500,000 in bribes or illegal donations. Mr. Olmert, however, denies these claims, saying that the funds were legal campaign contributions. Mr. Barak’s attack comes a day after a U.S. businessman, who is at the core of the controversy told investigators that he had given envelopes of cash to Mr. Olmert. Analysts point out that Mr. Barak’s remarks does not necessarily mean that the fall of the government is imminent. A collapse of the government could mean fresh parliamentary elections. This in turn could hurt the Labour Party. Opinion polls show that elections at this point are likely to elevate the Likud Party, led by the former Prime Minister, Benjamin Netanyahu, to a leadership position.

Observers point out that there was possibility that Mr. Olmert could step aside and Foreign Minister Tzipi Livni could emerge as the new Prime Minister.

AP reports:

The party could then try to form a new government, and if that effort failed elections would likely ensue. Ms. Livni and other Kadima leaders have remained silent since Tuesday’s damaging court testimony, although one junior Kadima legislator, Amira Dotan, urged Mr. Olmert to resign. The media reported several ministers were already positioning themselves to replace Mr. Olmert. Yuval Steinitz, a member of the hardline Likud Party, criticised Mr. Barak for not setting a firm deadline.

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