Israeli police to recommend not charging Olmert

JERUSALEM (CNN) -- Israeli police will recommend not charging Israeli Prime Minister Ehud Olmert for any involvement in the privatization of Bank Leumi, Israel's second-largest bank, police spokesman Mickey Rosenfeld told CNN Thursday.

The State Prosecution office will make the final decision as to whether to close the case or continue legal proceedings.

Nearly a year ago, Israel's chief prosecutor instructed police to investigate whether Olmert influenced the official process of the bank sale and the government's decision on buyers shortly after he was appointed finance minister in 2005.

At the time, the Israeli government owned a majority stake in the bank.

Olmert has denied the allegations of trying to steer the sale of Bank Leumi in order to help Australian real estate baron Frank Lowey, a close personal associate.

The announcement comes shortly after Olmert returned to Israel following Tuesday's Mideast peace summit in Annapolis, Maryland, and subsequent talks with President Bush and Palestinian Authority President Mahmoud Abbas.

According to the Israeli daily, Haaretz, police had planned to recommend closing the Bank Leumi case on Sunday but decided to delay the announcement until after the U.S. conference amid pressure from Israeli lawmakers.

Olmert is still under police investigation in connection with numerous other allegations, including buying a house in an upscale Jerusalem neighborhood for below-market value in return for favors. He is also being investigated for an alleged $10 million business deal as labor minister that involved his former business partner .

Olmert has denied the accusations and, while vowing to cooperate with the investigations, has called them "unnecessary." E-mail to a friend

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