MK, rightist group: Peres must return funds received in 2005
By Amiram Barkat, Haaretz Correspondent Last update - 13:22 18/07/2007
www.haaretz.com/hasen/spages/883427.html

MK Aryeh Eldad (National Union) and the right-wing Legal Forum for the Land
of Israel petitioned the High Court Wednesday for President Shimon Peres to
return $320,000 he received in contributions for his 2005 campaign in the
Labor Party leadership primaries.

"The president of Israel must not hold dirty money. He has to return it to
the state treasury," Eldad said.

State Comptroller Micha Lindenstrauss said in a 2006 report that Peres spent
some NIS 336,000 more than allowed on his campaign, noting that his income
from donations totaled some NIS 2.2 million while his expenses amounted to
approximately NIS 2.1 million.

Lindenstrauss' report referred to three donations totaling $320,000 that
Peres received - $100,000 from millionaire Bruce Rapaport, who resides in
Switzerland; $100,000 from billionaire Haim Saban of Los Angeles; and
$120,000 from billionaire Daniel Abrams from Palm Beach, Florida.

Lindenstrauss recommended Peres either return the funds or donate them to
the state.

Peres subsequently lost the primaries to Amir Peretz, and switched over to
Prime Minister Ehud Olmert's Kadima party. He was sworn in as Israel's ninth
president this past Sunday.

The state comptroller passed his findings on to Attorney General Menachem
Mazuz, without recommending he open a criminal investigation against the
president.

Peres' defense attorneys argued in response to the report that the Party
Funding Law was not applicable to contributions he received, as they were
donated before the election and had been approved by Labor's monitoring
body.

Eldad and the Legal Forum said in their petition that even though the state
comptroller issued severe criticism over Peres' management of the funds, the
president refused to give them back.

The petitioners requested the court order the Knesset ethics committee
discuss the issue. A week ago the committee determined it would not meet on
the subject, which it said does not concern the public.