Israeli PM's bureau chief suspended amid allegations of bribery

Last update - 07:56 11/02/2007
PM's bureau chief suspended amid allegations of bribery
By Yuval Yoaz, Haaretz Correspondent

Civil Service Commissioner Shmuel Hollander has suspended Shula Zaken for six months, Prime Minister Ehud Olmert's bureau chief, due to suspicions against her in the alleged bribery affair in the Tax Authority.

Hollander sent Zaken a letter at the end of the week in which he said the decision had been made by State Prosecutor Eran Shendar. "The alleged evidence collected against you so far in the police investigation justifies suspending you," the letter said.

The Civil Service Commission also decided to suspend six other senior officials in the Tax Authority, and a lesser official in the Prime Minister's Office. As opposed to Zaken, who was suspended for a delimited period, no time limit was stated with regard to the other suspects. Shendar also ordered the suspension of the other officials, since the Civil Service Commission does not have access to the police evidence in the case.

The head of the Tax Authority, Jacky Matza, is not being suspended, although the court has ordered him not to carry out his duties. Matza's suspension would make it impossible to appoint a new permanent head of the Tax Authority, and he is therefore expected to resign or to be dismissed by the cabinet so a new head can be appointed.

Two weeks ago, Attorney General Menachem Mazuz and Hollander recommended to Finance Minister Abraham Hirchson that he establish a committee to search for a new Tax Authority chief and not to have the minister make the choice, as was previously the case.

Shendar said Saturday night in an interview on Channel 2's "Meet the Press" that the investigation would be completed within two months, and that the case would be given to the economic department of the State Prosecutor's Office, which will make a decision on indictments.

Shendar also said the investigation of Olmert's alleged role in the sale of the controlling interest in Bank Leumi was ongoing and that it was too soon to say anything. With regard to other affairs involving Olmert, he conceded that the State Prosecutor's Office was in no hurry to open investigations due to the "wider implications of an investigation against the prime minister," and an investigation would be opened only if there was "no choice."

Jonathan Lis adds: The police said none of the suspects in the Tax Authority case, including Shula Zaken, has been able to refute the suspicions against them so far.