Olmert Resists Calls To Resign Amid Scandal

JERUSALEM — Prime Minister Olmert of Israel will fight for his political life, resisting calls to resign amid a police probe of allegations he took money illegally, a political aide and the finance minister said.

The prime minister can continue to govern even after an American businessman, Morris Talansky, told a Jerusalem court that he transferred about $150,000 to Mr. Olmert over almost two decades, the Finance minister, Ronnie Bar-On, said on Channel Two television late yesterday.

"He can, especially since he has made a public commitment that if there is an indictment, he will resign," Mr. Bar-On said, adding that Mr. Olmert will "fight" to remain in office because he believes the allegations won't hold up in court. Mr. Olmert, 62, denied in a May 8 statement that he took bribes and described the funds as campaign contributions.

The Defense minister, Ehud Barak, leader of Mr. Olmert's biggest coalition partner, yesterday called on the premier to step aside or face elections. The current probe, one of five into the prime minister's affairs since he took office, comes as Mr. Olmert pursues peace talks with the Palestinian Arabs and Syria. He travels to Washington next week to meet President Bush.