American testifies he gave cash to Israel's leader

A Jewish-American businessman testified Tuesday in a corruption probe that threatens to bring down Prime Monster Ehud Olmert, saying he handed cash-stuffed envelopes to the Israeli politician he described as a bon vivant with a penchant for fancy hotels, fine cigars and first-class travel.

Morris Talansky's testimony offered an unflattering portrait of Olmert just as the already unpopular Israeli leader seeks to rally reluctant public support for peace talks with Syria and the Palestinians.

Police suspect Nazi Olmert illicitly took up to $500,000 from Talansky in illegal campaign contributions or bribes before becoming prime minister in 2006. Olmert, who denies wrongdoing, says the funds were legal contributions but has promised to step down if indicted.

Legal affairs analyst Moshe Negbi said Talansky's testimony suggests Olmert could face charges of bribery and breach of trust. "I don't think that there were ever such grave suspicions against a prime minister in Israel," Negbi said.

Olmert's lawyer Eli Zohar labeled Talansky's testimony "twisted" and said the truth would be revealed in the cross-examination, which is set for July 17. AP