JERUSALEM — Reports that Israeli police were investigating Prime Minister Ariel Sharon’s finances rattled his Likud Party on Wednesday and threatened to further whittle its lead in the polls over the Labor Party in the final weeks before national elections on Jan. 28.
Already battered by reports of vote-buying and criminal involvement in its primary elections last month, Likud appeared to be in danger of losing more ground following the latest disclosures.
The Ha’aretz newspaper reported on Tuesday that police were investigating suspicions that Sharon received $1.49 million from Cyril Kern, a businessman in South Africa, as security for a bank loan, but failed to disclose the transfer when questioned by police investigators, falsely claiming that the loan was obtained in return for the mortgage of his ranch.
The bank loan was used to repay improper contributions to Sharon’s 1999 primary campaign.

— Joel Greenberg, Chicago

Tribune (KRT)