Investigations pose threat to Lieberman's career

Israel's far-right foreign minister faces a police investigation into alleged corruption that observers say might force the minister to resign.

TEL AVIV // Avigdor Lieberman, Israel's controversial far-right foreign minister, is facing an escalating police investigation into alleged corruption that some experts warn may jeopardise his political career. Since Mr Lieberman became Israel's top diplomat last week, he has already been questioned by the police's national fraud unit three times under caution as part of a year-long investigation into suspicions of bribery, money laundering, breach of trust and fraud.

While the police have declined to provide more details on the case, Israeli media have reported that the suspicions included receiving millions of dollars in bribes through fictitious bank accounts set up abroad. The reports have said that the inquiry has been stepped up in recent months after police obtained thousands of documents, including from the office of Mr Lieberman's lawyer, providing details such as bank records on money transfers.

The liberal Haaretz daily newspaper said this week, citing unnamed sources close to the case, that the police was nearing the end of their investigation and that it was likely to recommend to the state prosecution that an indictment be filed. Mr Lieberman, 50, has denied any wrongdoing. The former nightclub bouncer, who moved to Israel at the age of 20 and still speaks with a thick Russian accent, this week fended off speculation that he might be forced to resign. He was quoted as telling members of his Yisrael Beiteinu party at a gathering that he wanted to "conclude the matter as quickly as possible" and that "until the next elections, in four and a half years, I will continue to serve as foreign minister".

However, some Israeli legal experts said the investigation appeared to have entered a more critical phase and that Mr Lieberman may be forced to resign from his ministerial position should he face formal charges. Shimon Dolan, who led the economic crimes division at the state prosecution office from 1994 to 2004 and currently co-heads a private law firm, said in an interview that the allegations cited in the media appeared to be "very serious" and added that "it could be difficult" for Mr Lieberman to continue serving as foreign minister in case of an indictment.

Mr Lieberman's legal woes are adding to the controversy surrounding the new foreign minister. He has already been blamed by political rivals at home for increasing possible tensions with the US after he stated last week that talks on Palestinian statehood that were launched at the 2007 US-backed Annapolis summit had "no validity". Barack Obama, the US president, on Monday expressed support for the Annapolis negotiations during an official visit to Turkey.

Without moving from his statement, Mr Lieberman responded to the leader of Israel's closest ally on Tuesday. Speaking to members of his party, he said: "We have never interfered in the affairs of others, and we expect from others that they not interfere in ours. I do not expect from others that they have a stopwatch in hand and tell Israel when it must produce a responsible political programme". The apparent escalation of the police investigation is attracting attention because Mr Lieberman is seen as the second most powerful figure in Israel's new right-wing government. His party became the second-biggest partner in the governing coalition led by Benjamin Netanyahu, the prime minister and head of the ruling Likud party, after February's national elections. Without Yisrael Beiteinu's 15 parliamentary seats, Mr Netanyahu's 74-member coalition could lose its majority in Israel's 120-member parliament and face possible collapse.

Israel media have cited unnamed sources in Yisrael Beiteinu as saying the party does not plan to quit the coalition should Mr Lieberman be forced to give up his position. Still, Mr Lieberman appears self-assured that he will not be pushed out of his prominent post. Contributing to his confidence is the fact that the ministry of public security, which oversees the police, is headed by a member of his own party. While the minister, Yitzhak Aharonovitch, has claimed he has instructed the police commissioner not to inform him of investigations involving elected officials including Mr Lieberman in a bid to avoid a conflict of interest, speculation has been rampant in Israel that his control of the police may help stave off an indictment against his party leader.

Little information has been made public about the inquiry. Israeli media have reported that Mr Lieberman is suspected of accepting bribes from several prominent businesspeople in return for advancing their interests in Israel, and using the money to fund his election campaigns. The reports said that a main focus for investigators is suspicion that Mr Lieberman used a Cypriot bank account registered under his daughter's name to launder the money. A spokeswoman for Mr Lieberman declined to comment on the allegations.

In January, police detained Mr Lieberman's daughter, his lawyer and several other associates for questioning. Later that month, in what Israeli legal experts interpreted as an indication of considerable progress in the investigation, Menachem Mazuz, Israel's attorney-general, stated there was "significant evidence" in the case.
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