Olmert’s top aide turns state’s witness against him

In a series of dramatic eleventh-hour moves ahead of Monday’s scheduled verdict in a corruption case involving former prime minister Ehud Olmert, prosecutors reached a plea bargain Thursday with Olmert’s longtime former top aide Shula Zaken. Under the deal, Zaken agreed to serve as a state’s witness against him and to turn over material including a recording potentially incriminating him for attempted obstruction of justice. In return, Zaken will not have to serve more than 11 months in prison.

Zaken, who is implicated along with Olmert in the massive Holyland graft case, reached the deal with the state prosecution after several days of failed negotiations for a bargain.

The prosecution promptly appealed to the Tel Aviv District Court to delay its scheduled delivery of a verdict in the Holyland case this coming Monday. Instead, it sought permission to call Zaken to give new testimony. And it also sought the court’s leave to summon Olmert for questioning by police, under caution, over the new allegations.

The Tel Aviv court judge David Rozen gave the two sides until Sunday afternoon to present their arguments to him over the request.

Olmert’s lawyers Thursday evening described the agreement signed between Zaken and the state prosecutors “on the eve of the verdict” as “nothing less than obstruction of justice in the Holyland case.” They also said Olmert firmly rejected the allegations that he had sought to obstruct justice.

Zaken’s new evidence, dismissed by Olmert’s lawyers as “lies” produced as part of a “witch hunt” against him, ostensibly includes one or more recordings in which Olmert allegedly seeks to dissuade Zaken from accepting a plea bargain earlier in the proceedings over the Holyland scandal. The affair involves a massive housing project allegedly pushed through with bribes to local officials, when Olmert was mayor in Jerusalem over a decade ago.

The new evidence could be used to file obstruction of justice charges against Olmert, prosecutors said.

Zaken’s lawyers said Thursday evening that they were now working “side by side” with the state prosecution “to expose the entire phenomenon of corruption” in high places, and said Zaken had “crossed the Rubicon” despite the “extraordinary pressures” placed upon her. Lawyer Ofer Bartal said Zaken was now ready “to testify to the police and to any court as required… We will not place any obstacles.” Asked her if her testimony could affect other legal proceedings against Olmert — the state is appealing his acquittal in two other major cases — Bartal said that was for the prosecutors to decide.

Negotiations with Zaken nearly fell apart earlier on Thursday when she balked after failing to secure a guarantee that she would not be sent to prison. However, by early afternoon the two sides agreed in principle to the 11-month sentence and it was later announced the sides had signed the deal.

On Wednesday, Zaken produced a recorded conversation between herself and Olmert, in which the ex-prime minister can be heard instructing Zaken to commit actions that could be considered by the court as an obstruction of justice, her associates were quoted as saying.

Zaken’s legal team was in talks with the prosecution several weeks ago to work out a plea bargain that would have seen her turn state’s witness in the case.

However, the prosecution said at the time that the testimony offered by Zaken wasn’t strong enough to justify a plea deal. The Justice Ministry said in a statement that the decision to decline that testimony was made both because the trial had already passed the stage when new testimony could normally be admitted and because Zaken’s testimony could not be substantiated by “outside documentation.”

Olmert is “corrupt,” the long-time aide was quoted as having told police during questioning three weeks ago. She had voluntarily offered the testimony, which contradicted sworn evidence she has given over the years in several cases.

Zaken said then that Olmert had put money given to him by the American Jewish businessman Morris Talansky to private use — to buy suits, pens, cigars and overseas holidays — rather than use it as political campaign funds. She also said Olmert knew all the details of an alleged double billing scheme for his various trips abroad, under which more than one organization would sponsor the same trip, allowing the former prime minister to accrue funds which he used to finance family flights and upgrades to first class.

Olmert was acquitted of those allegations in 2012, and the state is currently appealing both verdicts.

The High Court of Justice rejected on Tuesday a petition by a nonprofit watchdog group to force the prosecution to allow Zaken to give last-minute testimony against Olmert. The Movement for Quality Government had appealed for Zaken to be accepted as a state’s witness against her former boss, but the High Court said the petition was lacking in factual justification.

Stuart Winer and Lazar Berman contributed to this report.