Court indicts real estate developer on bribe charges

TEL AVIV, Israel -- An Israeli businessman was indicted Wednesday on charges of bribing Ariel Sharon with hundreds of thousands of dollars. Justice Ministry officials said they were considering indicting Sharon as well.\nThe indictment against real estate developer David Appel complicates the prime minister's clouded legal situation. The Supreme Court has ruled that an indictment would compel Sharon to leave office pending the outcome of a trial.\nIncreased pressure on Sharon could further endanger the already moribund peace process, destabilize the coalition government and trigger a gloves-off battle for succession in the upper ranks of the Likud, politicians and analysts said.\nSharon was not charged with any criminal wrongdoing, and officials in his office said he was conducting business as usual Wednesday.\nJustice Ministry officials, speaking on condition of anonymity, said a decision about whether to indict Sharon and one of his sons would be made in the coming weeks or months, after the investigation is completed.\n"He should resign," said former Finance Minister Avraham Shochat of the Labor Party. "He is polluting the atmosphere."\nAppel was indicted in the Tel Aviv Magistrates court for allegedly giving Sharon hundreds of thousands of dollars to promote an ambitious real-estate project in Greece when Sharon was foreign minister in 1999 and to help rezone urban land near Tel Aviv before and during Sharon's term as prime minister.\nSharon was allegedly asked to use his influence to push forward both projects, although neither the project in Greece nor the land deal near Tel Aviv came to fruition.\nDuring 1998 and 1999, the indictment said, Appel "gave Ariel Sharon a bribe in recognition of activities connected to the fulfillment of his public positions."\nIt said Appel paid a total of $690,000 to Sharon's family ranch in the Negev desert. Appel, a powerful activist in Sharon's Likud Party, also promised his support to Sharon during two election campaigns, the indictment said.\nThe indictment also charged Appel with bribing Vice Premier Ehud Olmert to promote the Greek project when Olmert was mayor of Jerusalem in the late 1990s.\nIt also charged that Sharon's son, Gilad, received hundreds of thousands of dollars in consultation fees for the Greek project. Prosecutors believe these funds were used to bribe Ariel Sharon.\n"(Appel) and Gilad agreed to this arrangement despite the fact that the defendant knew that Gilad had no relevant professional qualifications," the indictment said.\nAppel's lawyer, Moshe Israel, denied the charges.\n"There is no doubt he is innocent," Israel said.\nIn order for Ariel Sharon to be charged, prosecutors must be convinced that a bribe was accepted with criminal intent.\nWednesday's indictment of Appel added uncertainty to Ariel Sharon's legal problems. The prime minister is also being investigated for alleged involvement in illegal campaign financing. Prosecutors suspect a $1.5 million loan was provided by foreign businessmen during his 1999 primary campaign for Likud Party leadership.\nMoshe Negbi, Israel Radio's legal affairs analyst, said, "It is not reasonable to believe that Sharon did not know what this money was being offered for."\nEyal Arad, an adviser to Sharon during the 1999 elections, played down the accusations.\n"If it was a serious issue, with real proof against the prime minister, that would require a separate debate and of course an indictment against him," he told Israel Radio.\nEven if Sharon is not charged, public pressure and anger within the ruling Likud Party could force him to step down, political analyst Emmanuel Rosen said on Army Radio.\nThe Yediot Ahronot daily said that Likud members are already preparing for a possible leadership battle. Leading contenders include former Prime Minister Benjamin Netanyahu and Foreign Minister Silvan Shalom.\nOlmert, as vice premier, would otherwise be a strong contender, but his alleged involvement in the Greek real-estate deal will likely harm his chances.