Monday, June 1, 2026
Peter Hirschberg
- Badly tarnished by his management of the Lebanon war in the summer of 2006, Israeli Prime Minister Ehud Olmert had begun, in recent months, to resurrect his public image. But a new corruption scandal in which he is being questioned by police has again undermined his credibility, and raised questions about his ability to govern effectively.
In what is now the fifth corruption-related affair in which the Prime Minister has been implicated since taking office two years ago – he has not been indicted in any so far – Olmert faces accusations of illicitly receiving hundreds of thousands of dollars in cash. According to the allegations, the money was transferred to Olmert by Moshe Talansky, a 75- year-old U.S. businessman and fundraiser, starting in the early 1990s.
Olmert has not denied receiving the funds, and has said he has known Talansky since 1993, but he insists that the money was used for legitimate purposes and went to cover his various election campaigns – as mayor of Jerusalem in the 1990s and when he ran in the primaries of the centre-right Likud party in 2002.
“I look in the eye of each and every one of you and say: ‘I never took a bribe. I never took a penny into my pocket’,” he said in a television address late last week just minutes after a court-imposed gag order on the details of the case was partially lifted.
Police investigators, who have already questioned Olmert once and plan to question him again, want the Prime Minister to account for the money, which was in cash.
There have been calls across the political spectrum for the Prime Minister to resign, with some right-wing politicians suggesting that in a desperate bid to survive politically, Olmert will be ready to make major concessions in order to reach a deal with the Palestinians or the Syrians. “Israel cannot afford to be led by officials who accept bribes,” said Arieh Eldad, a member of the hardline National Union party. “Moreover, Israel cannot afford to have these leaders take the country on questionable diplomatic adventures in order to escape punishment.”
Despite the calls for him to quit, Olmert’s political demise is not imminent. Police investigators have said that the probe could go on for months, and leaders of the Labour Party – the senior coalition partner – have suggested they will not leave the government unless the Prime Minister is indicted. Most members of his ruling Kadima party are also backing Olmert, but if opinion polls show that he continues to be an electoral liability – as they currently do – that will change.
Both Labour and Kadima members are also not in a hurry to dismantle the government: opinion polls indicate that if elections were held now, Likud chairman and opposition leader Benjamin Netanyahu would win, and they might find themselves on the opposition benches.
But the most serious question being raised in the wake of the latest allegations against the Prime Minister is whether he can continue to govern as he battles yet more corruption allegations. Can he contend with a sensitive security situation in Gaza, a highly complicated situation in Lebanon where deadly sectarian violence has erupted, and indirect contacts with Syria, while at the same time prepare for police investigations, consult with his lawyers and wage a PR campaign to limit the damage to his image?
Considering his tarnished credibility, it is difficult to see how Olmert would be able to win the type of broad public support that would be required for an agreement with the Palestinians or the Syrians. For their part, Palestinian officials fear that Olmert’s predicament will make it impossible for him to progress in peace talks, or might lead to new elections, which would then render unrealistic the end-of-year deadline set by U.S. President George W. Bush for a peace agreement between the sides.
It’s also unclear how foreign leaders will relate to the Prime Minister. When President Bush arrives in Israel this week to mark the country’s 60th anniversary he will no doubt publicly embrace the Prime Minister, but he will almost certainly be asking himself whether he can still do business with him.