Former prime minister Olmert acquitted of corruption charges, convicted of breach of trust

Former Prime Minister Ehud Olmert, who faced multiple corruption charges in a five-year legal proceeding, was acquitted Tuesday of the major charges that prompted him to resign from the prime minister’s post, but was found guilty of breach of trust. It is not clear whether the conviction will carry any jail time.

The verdict was seen as a major victory for Olmert, who stepped down as prime minister for the centrist Kadima party in 2009 to battle allegations that included accepting cash-stuffed envelopes from a supporter and pocketing the proceeds from a double-billing scam on overseas travel.

His conviction on the charge of breach of trust made him the first Israeli prime minister ever convicted of a crime. In addition, Olmert’s legal troubles are far from over: He will be sentenced on Sept. 6 and is currently standing trial in a separate real estate bribery case. For now at least, a return to politics for the 66-year-old Olmert appears unlikely.

The verdicts Tuesday dealt with three separate cases: charges of illegally accepting funds from American supporter Morris Talansky, double-billing Jewish groups for trips abroad and hiring unqualified political cronies.

Talansky testified to giving Olmert hundreds of thousands of dollars, some of it in envelopes stuffed with cash. Olmert has denied any wrongdoing.

The trial covered offenses allegedly committed before Olmert became prime minister, while he served as mayor of Jerusalem and later as a cabinet minister. The charges, however, were filed only after he became prime minister.

Olmert was acquitted of any wrongdoing in regard to the Talansky affair, and to the double billing affair — the two cases that prompted him to resign. Olmert was convicted of breach of trust in the Investment Center affair, which involved allegations that Olmert, during his term as industry, trade and labor minister, granted personal favors to Uri Messer, his former law partner.

On the double billing charges, the judge stated that, „the evidence did not prove beyond a reasonable doubt that actions were taken to obtain money for Olmert.” The three judges who presided over the cases stated that the prosecution had failed to prove beyond a reasonable doubt that Olmert was aware of the extraneous billing. They rejected the prosecution’s claim that Olmert had employed a system to profit from extraneous billing.

The court similarly rejected the allegation that Olmert had illegally received funds from Talansky. „The fact that the money exchanged hands does not constitute a crime,” said one judge. „We discussed whether the failure to report the contributions was a violation of the law and we came to the conclusion that even if rules had been broken, that doesn’t necessarily mean breach of trust.”

„After more than four years, the proceedings are over,” Olmert said as he exited the court. Referring to the breach of trust conviction, he said that „I respect the court’s decision and I will draw the appropriate conclusions from this. The court ruled that there was a procedural impropriety, not corruption. I respect that argument — I’ll take it to heart.”

Addressing the fact that he had ultimately been vindicated of the charges that had forced him to resign from office he said „you can’t ignore the far reaching implications of this trial, within Israel and without. What lessons are to be learned? I leave that to you.”

Olmert’s former bureau chief, Shula Zaken, who was implicated in the double-billing case, was convicted of fraud and breach of trust.

Olmert’s acquittal elicited responses from his close associates, who maintained throughout the proceedings that Olmert was unjustifiably hounded by the prosecution. One close friend, journalist and author Amnon Dankner, said „we are happy with Olmert, but we can’t avoid looking at the prosecution. Many people have said that State Prosecutor Moshe Lador should step down [over this]; I think he should commit suicide.”

The political establishment also issued responses, with chairman of the State Control Committee, MK Uri Ariel, saying, „the day a former prime minister is convicted is a dark day, a black stain on Israel’s record and a challenge for the public’s faith in its elected officials. However, the acquittals represent a day of atonement for the prosecution, indicating that serious mistakes were made.”

Meretz Chairwoman MK Zahava Gal-On said that, „Olmert’s conviction of breach of trust should keep him away from public office for good.”

The flurry of allegations during his time in the prime minister’s office hurt Olmert’s chances of reaching a peace deal with the Palestinians. Olmert claimed to be close to an accord just as he was driven from the premiership.

Since leaving office, Olmert has said he offered the Palestinians a peace deal under which Israel would have ceded about 93.5 percent of the West Bank, along with Israeli territory to make up for the 6.5% of the West Bank land that Israel would retain. He also proposed international administration of east Jerusalem’s most sensitive holy sites.

At the time, the Palestinians’ chief negotiator said they turned down the offer because they were not willing to compromise over full control of east Jerusalem.

Negotiations have been largely frozen since Olmert left office.

There were other instances of corruption among members of Olmert’s cabinet. His former Finance Minister Abraham Hirschson was sentenced to five years in prison for embezzlement, and another member of his cabinet, Shas Minister Shlomo Benizri, was sentenced to four years for taking bribes. Neither incident occurred while the two were in the cabinet.

Olmert has faced corruption accusations throughout his long political career but has never been convicted.

The 66-year-old Olmert has largely stayed out of the public eye since stepping down.

A veteran politician, known less as a statesman than as a backroom deal-maker, Olmert was catapulted unexpectedly into the country’s top job when a stroke incapacitated his predecessor, Ariel Sharon.

Besides the inconclusive peace efforts with the Palestinians, his term was marked by a war with Lebanon’s Hezbollah in 2006 and a bruising offensive in the Gaza Strip in early 2009 that largely halted years of Palestinian rocket fire.