Israeli Prime Minister's son faces prison sentence

Omri Sharon, the Israeli Prime Minister's elder son and campaign manager, faces up to five years in prison after he was indicted on charges of illegal fundraising for his father's successful 1999 contest for the Likud leadership and later for the premiership.

The 41-year-old Likud MP is alleged to have drummed up more than 6 million shekels, seven times the legal limit, most of it from foreign donors.

He is said to have channelled large sums through straw companies to suppliers and service providers. Other firms were allegedly instructed to issue false receipts.

Omri Sharon was charged in Tel-Aviv magistrates' court yesterday with forging corporate documents, perjury and breach of trust. Prosecutors rejected a proposed plea bargain that would have saved him from going to jail.

The indictment will embarrass Ariel Sharon, who is fighting for his political life after forcing through the evacuation of 25 Gaza and West Bank settlements against the wishes of the majority of his party.

Binyamin Netanyahu, who resigned as Finance Minister in protest at the disengagement, is expected to announce his candidacy for the Likud leadership later this week.

Recent polls suggest that he would beat the 77-year-old incumbent in primaries ahead of next year's general election.

Menahem Mazuz, the Attorney-General, had earlier decided not to press charges against the Prime Minister, who claimed that he knew nothing about how the funds were raised.

But Israeli commentators speculated yesterday that his son's trial might bring out new evidence that would persuade prosecutors to think again.

Omri Sharon waived his parliamentary immunity. He said that he preferred to argue in court that the restrictions made it impossible to run a legal campaign.

"Experts believe the reasonable expense for such a campaign is about 10 times the sum permitted by law," he contended.

"This law has never been enforced, and I am the only one to be indicted for violating it."

The Attorney-General declined to prosecute Ehud Barak, Mr Sharon's Labour rival in the 2001 election, after his campaign managers exercised their right to remain silent.

- INDEPENDENT