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Israeli prime minister involved in scandal

TEL AVIV, Israel - An Israeli court charged a real-estate developer yesterday with paying more than a half-million dollars in bribes to Ariel Sharon - a case that could force the prime minister to step aside.

While Sharon has not been charged, Justice Ministry officials say they are considering whether to indict the Israeli leader. The officials say the decision is expected in the coming weeks or months.

Sharon's spokesman Asaf Shariv would not comment on the case except to say: I can guarantee there will not be an indictment.

David Appel was indicted in the Tel Aviv Magistrates Court for allegedly giving Sharon hundreds of thousands of dollars to promote a tourism project in Greece and also to help rezone urban land near Tel Aviv before and during Sharon's term as prime minister.

Appel's lawyer, Moshe Israel, denied the charges. There is no doubt he is innocent

he said.

The indictment over the scandal - known as the Greek Island Affair - centers on allegations that Sharon's son Gilad received large sums in his father's behalf from Appel, an activist in Sharon's Likud Party who was trying to promote the project in Greece during 1999. Sharon was then foreign minister and allegedly was asked to use his influence to push both projects, although neither came to pass.

Specifically, the indictment said that during 1998-99 Appel gave Ariel Sharon a bribe in recognition of activities connected to the fulfillment of his public positions.

The indictment said Gilad Sharon, while ostensibly a consultant in the Greek project, served as a middleman in accepting the bribes. (Appel) and Gilad agreed to this arrangement despite the fact that the defendant knew that Gilad had no relevant professional qualifications it said.

It said Appel sent a total of $690,000 to Sharon's family ranch in the Negev desert. Appel also promised to support Sharon in party primary elections, the indictment said.

The indictment against Appel threatens not only Sharon's political career but also complicates the daunting task of negotiating peace in the Middle East.

Sharon and Palestinian counterpart Ahmed Qureia say they support the U.S.-backed road map peace plan to end 40 months of violence but remain deadlocked over details. In the meantime, Sharon has threatened to unilaterally redraw Israel's border with the Palestinians - a move the Palestinians oppose as a land grab, but that could also mean a historic dismantling of some Jewish settlements

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