Israeli police today accused Prime Minister Ehud Olmert of fraud and said an investigation into alleged bribe-taking had been widened to look at whether he made duplicate claims for travel expenses.
Police and prosecutors said they asked the Israeli leader during questioning today to "give his account about suspicions of serious fraud and other offences", which involved him billing different public bodies for the same trips abroad.
Police were questioning Mr Olmert for the third time as part of an investigation into allegations he took bribes from American businessman Morris Talansky. The prime minister has said he did nothing wrong in his dealings with the New York Jewish fundraiser but has promised to step down if formally indicted.
The investigation could hamper US-backed peace talks between Israel and the Palestinians if Mr Olmert is forced to quit.
"According to the suspicions, during his tenure as Jerusalem mayor and trade and industry minister, Mr Olmert would seek duplicate funding for his trips abroad from public bodies, including from the state, with each of them requested to fund the same trip," the statement from police and prosecutors said.
Police suspect his travel agency issued multiple invoices for trips then transferred the surplus money into a bank account in his name which it managed on his behalf. The funds were used for Mr Olmert's private trips, the statement said.
But Mr Olmert's spokesman repeated the prime minister was "convinced of his innocence", which he said would become apparent as the investigation continued. Mr Olmert was mayor of Jerusalem for 10 years until 2003. He later served as a cabinet minister before succeeding Ariel Sharon as prime minister in early 2006.
In testimony on May 27th, Mr Talansky told the Jerusalem District Court that he had passed $150,000 to Mr Olmert over a 15-year period, including loans that were never repaid. Mr Olmert said the money was used legally to fund election campaigns.
Reuters