Olmert indictment alleges all is not kosher in Holyland

Former Israeli Prime Minister Ehud Olmert, pictured here in a Jerusalem court on Jan. 2, where he was on trial over alleged double-billing for travel expenses, now faces new charges regarding a real estate scandal. Photo by Uri Lenz/Flash 90/JTA JERUSALEM – The indictment of former Israeli Prime Minister Ehud Olmert and 17 other Israelis on charges related to one of the largest real estate scandals in Israeli history is the latest shoe to drop in a country where political corruption has come to be seen as an epidemic.

The indictment issued Jan. 4 alleges that Olmert and several other Israeli officials accepted millions of dollars in bribes to promote a series of real estate projects, most prominently Jerusalem’s controversial Holyland development.

“There are so many ironies in the case,” said Stuart Schoffman, a fellow at Jerusalem’s Shalom Hartman Institute. “Israel is supposed to be the holy land. This project is called the Holyland, and yet it’s the most unholy business you can imagine.

“It’s like we’ve turned into Boardwalk Empire,” he added, referring to the popular American television show about corruption in Prohibition-era Atlantic City, NJ.

Olmert, who has denied any wrongdoing, already is standing trial regarding separate allegations that he accepted funds from U.S. businessman Morris Talansky and double billed Jewish groups for speaking trips abroad.

The corruption charges stem from alleged activities before Olmert became prime minister, an office he assumed in 2006 after a stroke left Ariel Sharon in a permanent vegetative state. Olmert resigned as prime minister in 2008 amid mounting allegations of corruption.

The scope of the latest charges is even greater than the previous ones both in terms of the amount of money involved and the large number of people who have been indicted, including a brother of Olmert’s, a longtime aide and his successor as mayor of Jerusalem.

In this case, Olmert is accused of taking bribes worth about $470,000.

The indictment alleges that his brother, Yossi Olmert, received $150,000 and that the former prime minister’s bureau chief, Shula Zaken, got about $100,000.

“This will only hit home when Israelis see him entering prison,” said Gil Hoffman, political correspondent for the Jerusalem Post. “When you have this many investigations, the best lawyer in the world couldn’t get him out of this.”

At the center of the indictment is the Holyland project, a hilltop complex of interlocking apartments that dominates the skyline of southwestern Jerusalem. Jerusalemites have nicknamed the project of three large buildings and an even larger tower “The Monster.”

There’s even a cynical joke making the rounds:

Q: Where’s the best place to live in Jerusalem?

A: The Holyland because it’s the only place in the city you don’t have to look at the Holyland project.

The indictment says the alleged crimes took place while Olmert was mayor of Jerusalem, a post he held from 1993 to 2003. According to the indictment, Olmert pushed through changes in zoning laws and stonewalled hundreds of objections. He also reportedly used some of the money he received to cover his campaign debts.

The new indictment against Olmert comes weeks after former President Moshe Katzav began serving a seven-year jail sentence for rape, sexual harassment and obstruction of justice. Olmert’s trial on the latest charges could last for several years, as did the prosecution of Katzav.

The Jerusalem Post’s Hoffman said he believes that Olmert’s indictment will serve as a warning to other Israeli politicians.

“In the past, Israeli politicians might have felt they could get away with such things,” he said. “But now they’re running scared. They’re afraid of doing anything even borderline because they’re afraid they’ll get caught.”