Israel's attorney general ordered police Monday to open a criminal investigation into suspicions that Prime Minister Ehud Olmert received a $330,000 discount on the price of a home in return for favors to the contractor who sold it to him.The decision prompted calls by the opposition for the unpopular leader, already under investigation in another corruption case, to step down. Analysts said his weakened standing will limit his ability to negotiate peace with the Palestinians, a top priority for the Bush administration.
Olmert's office declared his innocence, insisting in a statement that the purchase of the home was "made honestly, ethically and for an appropriate price." It described the investigation as "uncalled for" but said Olmert would cooperate with it "in order to bring it to an end as quickly as possible."
The prime minister would have to resign if Attorney General Menachem Mazuz, on the basis of what the police find, decides to indict him. Such an outcome could take months of legal maneuvering.
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