Israeli PM: new corruption accusations distorted

Police said on Friday that they had widened an investigation against Olmert. They said Olmert was suspected before he became prime minister of asking several charities and institutions to pay for the same trips abroad. Olmert pocketed the surplus, and used it for family trips abroad, according to the accusations.

The new allegations "break a norm of what should be appropriate in a democratic regime," Olmert told reporters on his plane as he departed for a summit of Mediterranean countries in Paris. "I was shocked by these distorted reports."

Olmert said he felt personally affronted because he had worked so hard for the organizations named in the accusations, which included the Yad Vashem Holocaust memorial and the Nazi watchdog Simon Wiesenthal Center.

"Using this matter to try to link this investigation to favors for my family is despicable," Olmert said.

The corruption case threatens to bring Olmert down and derail his administration's peace efforts with the Palestinians and Syria.

In reaction to the public outrage over the original case, Olmert's Kadima Party has scheduled primaries for September and analysts have said he will probably not run.

Olmert's successor at the head of Kadima would either form a new government or, if unsuccessful, run instead of Olmert in new elections.

According to the original accusations, Olmert received from an American fundraiser hundreds of thousands of dollars in cash as bribes or illegal campaign financing. The American businessman, Morris Talansky, testified in May that Olmert used some of the money he gave for expensive cigars, hotels and other luxuries.

Although Olmert's lawyers will this week begin cross-examining Talansky, the public outrage over the accusations was so great that Olmert's standing was severely damaged.