Prime Minister Ehud Olmert and his wife, Aliza, will soon be summoned for questioning by the State Comptroller's Office on suspicion of receiving benefits worth some half a million dollars.

State Comptroller Micha Lindenstrauss is looking into suspicions that the Olmerts were given an exorbitant discount on the purchase price of a garden apartment on Jerusalem's Cremieux Street.

According to these suspicions, Olmert's associates worked to help the contracting company that renovated the house to obtain unusual permits from the Jerusalem municipality. These permits significantly increased the profitability of the project.

The affair was first published on the NFC Internet site, run by journalist Yoav Yitzhak.

The Prime Minister's Office said in response that "the prime minister has not received any request from the comptroller's office."

On Thursday, officials in Olmert's office said that they were looking into the report.

The comptroller said in a statement Thursday that he has been looking into the matter for several months, collecting documents and statements from those involved.

"We haven't turned to the prime minister yet for a reaction," the comptroller said in a statement, adding that the report on the investigation was "premature."

The Olmerts bought a garden apartment at 8 Cremieux Street in Jerusalem in October 2004, for a price of $1.2 million. According to the comptroller's findings, however, the apartment's true value is between $1.6 million and $1.8 million. Thus at the time of the sale, Olmert apparently received a discount worth between $400,000 and $600,000.

The building in which Olmert's apartment is located was defined as a historic preservation site. The building covers an area of about 330 square meters, and the contractor who sold the apartment to Olmert wanted to expand the building to cover an area of about 750 square meters. In order to do this, however, he needed a permit from the Jerusalem municipality to tear down the existing building and build it anew.

According to the material gathered by the comptroller, Olmert's associates helped the contractor to obtain the necessary permits from the Jerusalem municipality, and in the end, another two apartments - in addition to Olmert's garden apartment - were built in that building.

Yitzhak claimed in his NFC report that the company sold Olmert his apartment for $3,306 per square meter, but it is asking for significantly more than the other apartments in that project.

The State Comptroller's Office believes that the evidence amassed to date justifies summoning Olmert and his wife for questioning. The Olmerts will probably be questioned by a team of investigators from the State Comptroller's Office and by a retired police officer, Major General Yaakov Borovsky, who serves as the comptroller's adviser in his war against corruption. Soon after the couple is questioned, the comptroller is expected to submit his findings to Attorney General Menachem Mazuz, so that the latter can decide whether to open a criminal investigation.

The Prime Minister's Office said in response: "The prime minister has not received any request from the comptroller's office. We have trouble believing that once again, the State Comptroller's Office has chosen to go to the media before going to the prime minister."

Israeli police have questioned President Moshe Katsav over allegations of sexual harassment and corruption.

Associates of Olmert added that they were surprised by the comptroller's intention of summoning the prime minister's wife for questioning as well, since she does not hold any public office.

Two former female employees of Mr Katsav have said he forced them to have sexual relations with him.

One of the women also reportedly said he illegally granted pardons. Police searched Mr Katsav's home earlier this week. He has denied any wrongdoing.

Several Israeli leaders, already receiving criticism over the war in Lebanon, face charges of misconduct.

Prime Minister Ehud Olmert is under investigation over his purchase of a property in Jerusalem.

Justice Minister Haim Ramon was indicted on Wednesday over claims he forcibly kissed a female soldier. He stepped down on Sunday over the claims, insisting he was innocent and would clear his name in court.

Last week, another senior member of Mr Olmert's Kadima Party, Tzachi Hanegbi, was indicted on charges of fraud, bribery and perjury. He insisted he could prove his innocence.

The head of the Israeli armed forces, General Dan Halutz, has also been under pressure for selling his entire share portfolio hours before the outbreak of fighting in Lebanon.

Home raided

Police conducting the inquiry into the allegations against the Israeli president seized computers and documents during a raid on his Jerusalem home this week, officials said.

Mr Katsav was questioned for five hours on Wednesday and police said he would be questioned again on Thursday.

"The president has never committed any violation," said Mr Katsav's lawyer Zion Amir. "He did not harass any man or woman."

If charged, President Katsav will be immune from prosecution.

However, he can be impeached by parliament if it feels he acted inappropriately.

Mr Katsav is a veteran member of the right-wing Likud party, serving as transport minister in the late 1980s and in 1996 as minister of tourism and deputy prime minister.

He has held the office of president, a largely ceremonial role, since 2000.

Commentary: