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May 5, 2008 - Vol. 9, Issue 34

OLMERT'S LATEST WOE; ROADBLOCKS; FLATLINE (Palestinian GDP); THE AMAZING RECURRING OUTPOST;

OLMERT'S LATEST WOE: An Israeli police interrogation Friday of Prime Minister Ehud Olmert sparked tremendous speculation about whether a new scandal could force Olmert to leave the political scene. A gag order is preventing news agencies from publishing details of the story. In a possible violation of the this order, Yedioth Ahronoth reported Friday that Olmert is suspected of receiving large sums of cash from an American businessman who works in Israel. Television broadcasts reported that the investigation centered on funds allegedly received in 1998 and 2001, when Olmert was mayor of Jerusalem. Olmert's former bureau chief, Shula Zaken, reportedly refused to answer police questions on the matter and has been placed under house arrest.