Israeli Tax Authority boss questioned in bribery probe

Last update - 16:22 02/01/2007


PM's bureau chief, Tax Authority boss questioned in bribery probe

By Jonathan Lis and Yuval Yoaz, Haaretz Correspondents

The police fraud squad on Tuesday morning questioned Prime Minister Ehud Olmert's bureau chief and the director of the Tax Authority over suspicions that businessmen and figures in the political world were bribing senior members of the Tax Authority in return for tax breaks.

According to the suspicions, tax officials were also bribed to promote associates of the businessmen and political figures to senior positions at the Tax Authority.

Olmert's bureau chief, Shula Zaken, and the director-general of the Israel Tax Authority, Jacky Matza, were both questioned at the fraud squad headquarters in Bat Yam.

Police from the fraud squad have raided the homes and offices of senior officials at the Tax Authority and businessmen, searching for evidence. Investigators believe that the alleged bribery involves a large number of high-ranking officials.

Business people are suspected of having exercised influence in recent months on the activities of the Tax Authority.

The Movement for Quality Government has demanded that Attorney General Menachem Mazuz and Civil Service Commissioner Shmuel Hollander immediately suspend Zaken from her post, as well as other officials currently under suspicion.

Zaken's brother, Jerusalem City Councilman and Likud Central Committee member Yoram Karshi, is also being questioned in connection with the alleged bribery affair, as is businessman and Zaken confidant Simu Tubol.

Tubol, a contractor and owner of a company that produces construction materials, also owns two upscale Jerusalem restaurants frequented by senior politicians.

Several months ago, Tubol was questioned over suspicions of tax evasion.

The police investigation of the Tax Authority, which was conducted in secret for several months, included wiretapping of Shula Zaken's conversations.

She was recorded speaking with a women IDF officer identified as L., the commanding officer of H. the woman soldier who accused former justice minister Haim Ramon of having kissed her against her will. Ramon is currently on trial for the alleged indecent act.