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Sharon returns home to new fund-raising scandal

20/09/2005 - 11:52:48
Israeli prime minister Ariel Sharon, who is trying to beat back a hard-line revolt in his Likud Party, faced a new challenge today, after an Israeli TV station reported that he violated campaign financing laws.

The report said that during his recent trip to New York, Sharon attended a dinner whose guests were asked to contribute $10,000 (€8,215) per couple to Sharon’s re-election campaign, exceeding the Israeli limit of $7,800 (€6,404).

Sharon’s allies denied he broke campaign laws, but the allegations could further weaken him ahead of next week’s crucial vote in Likud on whether to move up a date for primaries. Likud’s decision could determine whether Sharon stays in the party, or quits and forms his own party ahead of general elections.

The Likud hard-liners are upset over the recent withdrawal from the Gaza Strip and four West Bank settlements.

The New York dinner was hosted by Nina Rosenwald, a wealthy businesswoman involved with several prominent Jewish organisations, Channel 10 TV reported.

The station quoted from an invitation that stated attendees would be expected to contribute to Sharon’s primary campaign to retain Likud leadership against a challenge from former Prime Minister Benjamin Netanyahu.

The TV report said guests were told in the invitation that they could contribute the money to a not-for-profit organisation that operates throughout Israel “and has been particularly effective at bringing people to the polls”.

Sharon, who returned to Israel yesterday, did not comment. But his spokesman, Asaf Shariv, described the event as “dinner with friends,” and that money was not discussed.

Vice Premier Ehud Olmert, a Sharon ally, told Israel Army Radio that “as long as you can’t prove that Sharon got even one cent of money that was illegally raised, I recommend that you be careful.”

Sharon has been dogged by allegations of improper fund-raising during his four years in office, though he has never been charged. His oldest son, Omri, was indicted last month for improperly raising funds for his father, and police continue to investigate a shady loan from a South African businessman taken to cover illegal contributions in a 1999 primary election campaign.

Sharon is trying to shore up support in the Likud ahead of a convention next week. Although Sharon remains the country’s most popular politician, he lags behind Netanyahu among Likud voters by a few percentage points, according to polls published yesterday in Israeli daily newspapers. Israeli radio stations said Sharon planned to meet with about 100 Likud leaders today to bolster support.

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