The New Nation - Internet Edition

AFP, Jerusalem

A US millionaire who is the key witness in the latest corruption probe against Israeli Prime Minister Ehud Olmert admitted in sworn testimony on Tuesday that he gave large sums of cash to the premier.

Morris Talansky's evidence in an investigation into claims that Olmert received illegal funds in the years before he became prime minister in 2006 could lead to an indictment and his resignation.

Talansky's deposition-sworn testimony that can be used later in a trial-is expected to last for several hours in Jerusalem district court.

"I gave some money to Olmert for his (election) campaigns in 1991 and 1992t He told me that he would prefer cash, and I gave him first some money from my private funds, then some money collected in the United States on his behalf," said Talansky, according to Israeli public radio.

"In 1998 also, some money-generally about 3,000 to 8,000 dollars each time-was given, always in cash, because Olmert did not want cheques," he said. Talansky added that he asked for "nothing in return". Questions from state prosecutor Moshe Lador and Jerusalem prosecutor Eli Abarvanel are being translated from Hebrew into English for the 75-year-old financier.

The American businessman said he got to know Olmert, 62, around the time of the 1991 Gulf War.

"He was then health minister. He was a prince of the Likud (the right-wing political party), an intelligent man that I liked a lot and who, in my view, should be helped."

Talansky's giving sworn testimony was approved last week by Israel's high court even while the anti-fraud police investigation is still under way.