WRAP Israeli PM denies secret talks with Syria, ADDS investigation into bank privatisation

(16 Jan 2007) West Bank - 16 January, 2007 1. Various of Israeli Prime Minister, Ehud Olmert, speaking to Israeli border officials at Israeli checkpoint 2. Police officer 3. SOUNDBITE: (Hebrew) Ehud Olmert, Israeli Prime Minister: "I knew of nothing, no one in the government was involved in this matter. It was a private initiative on the part of an individual who spoke for himself. From what I read, this interlocutor was an eccentric from the US, someone not serious nor dignified, and it is inappropriate to say any more than I have said, which was already too much." 4. Olmert at checkpoint File: Jerusalem - 4 January, 2006 5. Former Israeli Prime Minister, Ariel Sharon, entering room 6. Sharon sitting in meeting next to Olmert 7. Close-up of Sharon 8. Sharon and Olmert holding ceremonial cheque for Leumi Bank 9. Sharon leaving room STORYLINE: The Israeli Prime Minister Ehud Olmert on Tuesday, denied any knowledge of secret negotiations between Israel and Syria, which an Israeli newspaper claimed took place for nearly two years. The daily Haaretz newspaper reported that representatives of the two countries held talks which produced a framework for a peace deal, before the war erupted in Lebanon last summer. "I knew of nothing, no one in the government was involved in this matter," Olmert told reporters on a visit to an Israeli checkpoint. "From what I read, this interlocutor was an eccentric from the US, someone not serious or dignified, and it is inappropriate to say any more than I have said, which was already too much," the Israel Prime Minister added. A Syrian Foreign Ministry official dismissed the report as "absolutely baseless". However, an Israeli government spokesman, speaking on condition of anonymity because of the secrecy of the contacts, confirmed that officials were aware of the talks, though they were not sanctioned by the government. Haaretz reported that former Israeli Prime Minister Ariel Sharon was briefed on the meetings and his successor, Olmert, was also informed. According to the paper, the two sides reached a series of understandings that included a full Israeli withdrawal from the Golan Heights, captured from Syria in the 1967 Middle East war and occupied ever since, and an end to Syrian support for anti-Israel militant groups. The report did not identify its sources, but said the Israeli and Syrian representatives met secretly in Europe several times between September 2004 and July 2006. Such an agreement between Israel and Syria would end one of the Middle East's most bitter conflicts. Syria hosts the headquarters of the radical Palestinian groups Hamas and Islamic Jihad, and it is the closest ally of Hezbollah, the Lebanese militant group that fought Israeli troops in a ground war in south Lebanon last August as Israeli planes bombarded Lebanon. Meanwhile, Olmert also faces questions from Israeli police who are opening a criminal investigation into his role in the privatisation of an Israeli bank, the Justice Ministry said in a statement on Tuesday. Suspicions have been raised about allegations that in 2005, Olmert, who was then Vice Prime Minister and Finance Minister, favoured business associates during the sell-off of a controlling share of Bank Leumi, one of Israel's largest financial institutions. If Olmert is indicted, he would have to step down, according to legal precedents. The Justice Ministry statement said that a preliminary investigation of the allegations raised in a report by the state comptroller about the bank sale had built up sufficient evidence to justify opening a criminal investigation. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter:   / ap_archive   Facebook:   / aparchives   ​​ Instagram:   / apnews   You can license this story through AP Archive: http://www.aparchive.com/metadata/you...