JERUSALEM, Oct 24: Israeli authorities said on Tuesday they were examining the privatisation of Bank Leumi after Israeli media raised new corruption allegations against Prime Minister Ehud Olmert related to his role in the sale last year.

An Israeli Web site said Mr Olmert as finance minister at the time tried to help two overseas-based businessmen, whom it described as his personal friends, in the bidding for Israel’s second largest bank. Mr Olmert’s office declined to comment.

The justice ministry released a statement it said was specifically ‘in response to reporters’ queries after the report on the Web site News First Class’. It said prosecutors were looking into material related to the sale.

“At this stage, no decisions have been taken, no criminal proceedings of any kind are under way in the matter and police are not involved,” the ministry said.

Neither of the businessmen purchased the bank. Its controlling interest was sold last year to US investment group Cerberus-Gabriel for 2.47 billion shekels ($540 million).

Israel’s main government watchdog, the State Comptroller’s Office, is already looking into the terms of Mr Olmert’s purchase of a Jerusalem apartment in 2004 and whether he appointed cronies to a business authority that year.—Reuters