In a new blow to Olmert's efforts to clear his name, a key member of his defense team resigned this week after he was criticized for suggesting that Olmert accept a plea bargain and resign, rather than face possible prison time, the Haaretz newspaper reported yesterday.

According to newspaper accounts, attorney Ron Shapira felt that Olmert could plead guilty to fraud and breach of trust to avoid prison. The Haaretz report said Olmert and other lawyers on the team opposed the idea, saying the prime minister should stay and fight.

Shapira's departure was depicted in the Israeli media as a sign of turmoil inside Olmert's defense team just as the crucial cross-examination of Talansky was beginning.

Olmert is reportedly still considering running in the Kadima primaries, hoping that his lawyers will be able to discredit Talansky, an Orthodox Jew who lives on New York's Long Island but visits family in Israel frequently.

Talansky said Olmert accepted hundreds of thousands of dollars in cash during his tenure as Jerusalem mayor and as a Cabinet minister before he was elected prime minister in 2006. The money went to feed a penchant for expensive cigars, first-class travel and luxury hotels, Talansky charged. His cross-examination is expected to take five days.

Police suspect the money was meant as bribes - although Talansky insisted he never got anything in return - or illegal campaign financing.

In yesterday's cross-examination, Olmert lawyer Eli Zohar accused Talansky of forgetting details or giving inaccuracies in his earlier testimony.

Talansky responded by saying he might have gotten a few minor things wrong, like the time events occurred, but that in general he was telling the truth.

"I never gave a false answer, he said.

(China Daily via agencies July 18, 2008)