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Israeli police question Olmert over 2005 bank sale

Police in Israel have begun questioning Prime Minister Ehud Olmert as part of an investigation into the privatisation of one of Israel's biggest banks.

It is alleged that in 2005 when he was finance minister, Mr Olmert altered the terms of the sale of the bank in order to help his friend, Australian businessman Frank Lowy, in the bidding process.

Mr Olmert has denied any wrongdoing.

Mr Lowy later withdrew his bid, and there is no evidence in the public domain that Mr Olmert received anything in return for his alleged help.

Local news reports suggest the most serious charge Mr Olmert could face is breach of trust. © 2007 Australian Broadcasting Corporation

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