Olmert aide could face charges in corruption probe

JERUSALEM (Reuters) - One of Prime Minister Ehud Olmert's closest aides could face criminal charges after police told prosecutors on Monday they had found evidence of corruption in an investigation focusing on Israel's Tax Authority.

Shula Zaken, Olmert's long-time office manager, is suspected of helping to arrange the appointment of officials to the Tax Authority who then granted favours and tax breaks to businessmen with whom she was associated, police said.

She has denied the allegations through her lawyer.

Olmert was not a subject of the investigation. But he is the focus of probes by Israel's state comptroller over his role in the 2005 sale of a government-owned bank and his purchase of a Jerusalem apartment in 2004.

He has denied any wrongdoing.

Four other suspects also face possible indictment in the Tax Authority case -- two former tax commissioners and two businessmen, one of them Zaken's brother, police said.

"The police believe the investigation established a foundation of evidence pointing to breach of trust," police spokesman Micky Rosenfeld said.

"The police have handed over their findings and it's up to the attorney general and Justice Ministry to decide whether to bring them to trial," he said.

Zaken was suspended in February from her position in Olmert's office for six months.