RAMALLAH, West Bank: Israel Police’s National Fraud Unit said yesterday that sufficient evidence existed in “Israeli Investment Center” affair to charge Prime Minister Ehud Olmert for graft and breach of trust during his stint as Industry and Trade Minister under predecessor Ariel Sharon.

Police said final decision on the matter lies with Attorney General Menachem Mazuz and the State Prosecutor’s Office.

The development comes just five days after Mazuz announced his intention to charge Olmert with a string of offenses stemming from the American Jewish businessman Morris (Moshe) Talansky affair.

In the “Israel Investment Center” affair, Olmert is suspected of fraud and breach of trust while trade minister in granting preferential treatment to a factory represented by his then-lawyer and former friend, Uri Messer.

The center case dates back to 1998, when a group of American businessmen looked into building a large-scale, joint Israeli-Jordanian recreational project stretching across 1,235 acres between Eilat and Aqaba.

The joint venture did not materialize and in 2002, the group recommended that the Israeli government proceed with it on its own. The project was to be managed by the Israel Investments Center, headed by Olmert’s confidant Attorney Uri Messer.

According to a State Comptroller’s Office investigation, Messer asked Olmert — in his capacity as industry and trade minister — to grant the center and its affiliates various grants.

The comptroller’s report also detailed a number of occasions in which the prime minister interfered directly in the center’s affairs, stating that not only did Olmert comply despite a clear conflict of interest, he also attended several meetings meant to advance the center’s bid, exerting his direct ministerial influence in favor of Messer and his partners and even allegedly granted financial favors.

Olmert, who announced his intention to resign in July 2008 due to mounting corruptions claims against him, also faces charges for allegedly billing multiple organizations for the same trips abroad.

In a letter to Olmert’s attorneys earlier this week, Mazuz said that he believes the prime minister had methodically abused his public office and his status to acquire personal favors from Talansky over a period of time.

Mazuz wrote Olmert obtained financial favors in exchange for assisting Talansky in his business ventures.

Both indictments are now pending a judiciary hearing.

Amir Dan, Olmert’s communications director, , said in response that “during his tenure as industry and trade minister, Olmert conducted himself in the manner expected of any minister in the government who cares about what is best of the Negev area.

“The attempt to turn every personal acquaintance into a criminal offence is unreasonable. Olmert had only one goal — to assist in creating hundreds of jobs and to fight the bureaucracy which has held back the region’s development for years.”

Olmert, added Dan, “Was honored by the Israeli industry just a week ago for the hundreds of decision he has made, that have advanced the sector and created jobs. Flooding the public’s (mind) with these decisions now is not accidental and is meant to distract it from the weakness of the claims,” he concluded.