JERUSALEM — Prime Minister Ehud Olmert suffered another blow Thursday when a key rival for power in his political party suggested the embattled leader should be replaced because of a widening corruption investigation.
With the comments from Foreign Minister Tzipi Livni, Olmert now encounters an open rebellion in his Kadima Party. That makes it increasingly unlikely he can survive the public uproar that has gripped the country since a key witness described illicit cash payments to the luxury-loving Israeli leader.
Livni’s comments came a day after Ehud Barak, the powerful defense minister, called for Olmert to go. Barak threatened to pull his Labor Party, a key coalition partner, out of the government and force new elections if he didn’t comply.
Livni, one of Israel’s most popular politicians, suggested a change of leadership was required to maintain the party’s dignity, becoming the first senior party member to openly come out against Olmert.
“I think the reality has changed since yesterday and Kadima has to make decisions,” Livni told reporters. “I suspect that Kadima needs to start right away acting for every eventuality, including elections.”
Olmert has faced considerable public pressure to resign since U.S. businessman Morris Talansky testified in court this week that he handed Olmert $150,000 over the years, in addition to unspecified sums from other donors. Olmert insisted on getting the money in cash and used it to help finance his penchant for high living, including luxury hotels and first-class travel, Talansky testified.
Olmert has weathered a string of scandals since he took office two years ago and has vowed to fight the latest accusations. His lawyers are set to cross-examine Talansky on July 17.
Olmert has denied any wrongdoing and said he would resign only if he is indicted. But he may not last that long.
“Politically, he is finished. Now it’s just a matter of time,” said political analyst Hanan Crystal.
Crystal called the Talansky testimony a “smoking gun.”



