Olmert says business as usual despite police probe

By Jeffrey Heller

JERUSALEM (Reuters) - Israeli Prime Minister Ehud Olmert said on Sunday he would conduct government business as usual despite what he described as vicious rumours about the nature of a new police investigation against him.

Fresh questions about Olmert's political future emerged as U.S. Secretary of State Condoleezza Rice visited the region to try to move Israeli-Palestinian peace talks towards a deal she said Washington still hoped to seal by the end of the year.

Israeli media quoted unidentified legal sources and unnamed political officials as saying the suspicions against Olmert were particularly serious and could force his resignation, a move likely to delay peace efforts he has pursued at U.S. behest.

"I answered all questions I was asked. I cooperated with the investigators," Olmert said in his first public remarks about his sudden questioning on Friday by police. "I have an agenda as Israel's prime minister. I intend to carry on with this agenda."

Olmert, 62, is already under investigation in a series of corruption cases. He has denied any wrongdoing in those probes.

Police have not disclosed why they questioned Olmert on Friday in a new investigation.

Olmert's office said in a statement on Friday he was asked about funds raised by an unnamed American for municipal and party elections in 1999 and 2002. It did not say whether police suspect Olmert of obtaining or using the money illegally.

Olmert successfully ran for reelection as Jerusalem mayor in 1999. In 2002, he ran against then Prime Minister Ariel Sharon for the leadership of the right-wing Likud Party, but lost.