Olmert suspected of illegally receiving funds

Olmert said he never took illegal campaign contributions, responding to a corruption case that also has the potential to derail delicate peace talks with the Palestinians.

Olmert made his statement in a nationally televised speech from his official residence late Thursday after a gag order was lifted from the case. According to police suspicions, Olmert accepted hundreds of thousands of dollars in illegal contributions from American Jewish businessman Morris "Moshe" Talansky.

Army Radio said suspicions concern money Olmert allegedly received from 1999 to 2003, when he was mayor of Jerusalem and later minister of industry and trade.

In his statement, Olmert said a lawyer handled his finances, and everything was legal. "I am looking at all of you in the eye, and I say I never took bribes, I never took a penny for myself," he said.

He said he would not fight to stay in office if he is charged.

"I was elected by you, citizens of Israel, to be the prime minister and I don't intend to shirk this responsibility. At the same time, and even though the law does not require me to do this, I will resign from my job if the attorney general decides to issue an indictment against me," he said.

Olmert said Talansky had made contributions to him for two mayoral campaigns for Jerusalem, one campaign for chairman of the Likud Party and another to cover campaign debt retroactively.

He said he has served the Israeli public in different roles for more than 30 years, and, like any prime minister, is now dealing "with important and sensitive issues which concern our existence as a people and as a state."

"I am sorry about the rough times that the public is going through, as are those who are close to me. I hope that this storm too, shall pass with the same speed by which it was ignited," he said.