Israeli govt watchdog calls for Olmert investigation

JERUSALEM, Sept 3 (Reuters) Israel's top government watchdog today called for a criminal investigation of Prime Minister Ehud Olmert under suspicions of impropriety regarding past political appointments, Israeli media reported.

Israel's YNET News and NRG Maariv Web sites said the state comptroller had recommended the attorney-general order a probe into Olmert's appointments at a government-funded business authority when he was industry and trade minister in 2004.

A spokeswoman for the state comptroller's office refused to comment on the report and there was no immediate comment from the attorney-general's office. The prime minister's office has denied any wrongdoing by the Israeli leader.

Israeli State Comptroller Micha Lindenstrauss told Attorney-General Menachem Mazuz in a letter that he ''identified suspicions of criminal (activity)'' in the case, YNET News said.

The state comptroller had asked Mazuz last week to look into the appointments of four officials from the Likud, Olmert's political party at the time, to positions in the Small and Medium-Sized Business Authority.

The deputy director-general of the State Comptroller's office has called the appointment procedure ''improper.'' Olmert's office has said proper procedures were followed.

The State Comptroller's Office is also examining the terms of a real estate deal Olmert had made in 2004. No criminal charges have been filed against him in either case.

Olmert broke away last year from Likud to then-Israeli leader Ariel Sharon's centrist Kadima party, which won a parliamentary election in March.

Reuters DH GC0027