Former Israeli PM back in court, corruption trial reopens

Israeli Prime Minister Ariel Sharon (L) shakes hands with Ezra Merkin (R), managing partner of the Gabriel Capital Group, as Israeli Finance Minister Ehud Olmert (C) looks on during a ceremony completing the sale of Bank Leumi to a private US investment group in his office in Jerusalem in this January 4, 2006 file photo. [Photo/Agencies]

JERUSALEM - Israel's former prime minister Ehud Olmert returned to court on Tuesday as the state prosecution reopened a corruption case against him at the Jerusalem District Court.

Olmert was acquitted in what came to be known as the "Talansky Affair" in July 2012. He was suspected of illegally receiving large sums of money in envelopes during fund-raisers from US businessman Moris Talansky and charged with fraud and tax evasion.

The state prosecution decided to reopen the trial after reaching a plea bargain with Olmert's former aide Shula Zaken, who was willing to testify against him in the Talansky affair and offered new evidence in the form of audio recordings of conversation between her and Olmert. She is set to start testifying in early November.

The Supreme Court granted the state attorney's motion for a retrial following the newly discovered evidence and testimony. In exchange for her help, Zaken was sentenced to 11 months in jail for her part in the improprieties.

The former prime minister was forced to step down in 2008 following several corruption allegations. He was convicted in another case, the Holyland affair, in May, in which he was found guilty of receiving bribes as the former mayor of Jerusalem in exchange for expediting construction procedures for a real estate project.

Olmert was sentenced by the Tel Aviv magistrate for a prison term of six years. He appealed the sentence and his prison term awaits the results of the appeal.

In other fraud cases, Olmert was accused of double-billing organizations for family vacations and granting favors for his former partner and long-time friend attorney Uri Messer.