Israeli Economy Shrugs Off Scandals

Enjoying record foreign investment and healthy growth, business has been able to ride out a deluge of sleaze and corruption in governmentso far

An unprecedented wave of scandals and corruption involving senior public officials is shaking Israel's political establishment. Police are investigating President Moshe Katsav, Prime Minister Ehud Olmert, two cabinet ministers, the police commissioner, and the Income Tax Authority director, on allegations ranging from rape and sexual harassment to breach of trust and political cronyism. (Both the tax director and police commissioner have stepped down.) The latest scandal to hit the headlines concerns Finance Minister Avraham Hirchson, who is suspected of involvement in an embezzlement case.

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