Zaken's lawyer denies deal in the works

Channel 2 claims PM's aide may testify in Talansky case in return for having separate charges dropped.

Zaken 224.88 (photo credit: Ariel Jerozolimski)
Zaken 224.88
(photo credit: Ariel Jerozolimski)
Shula Zaken's attorney Micha Fetman on Wednesday night denied a Channel 2 report that his client intended to sign a deal with the state, according to which she would divulge all she knows about the Talansky affair. According to Channel 2 , a case against Zaken in which she is implicated in political nominations in the Tax Authority would be closed in return for her testimony. Fetman told Israel Radio that he had rejected deal offers by the state, adding that the issue was not being discussed at all. Prime Minister Ehud Olmert's long-time aide Zaken was, according to investigators, the middleman who received some of the funds New York financier Morris Talansky gave Olmert. The Tax Authority affair became public early in 2007, when the police announced that they had detained 22 people, including Tax Authority employees, private businessmen and Zaken, then head of the prime minister's bureau. After conducting a secret investigation for the two previous months, police suspected that then head of the Tax Authority Jackie Matza and others had received bribes in return for charging less taxes than they should have to various businessmen, and for making appointments to the authority according to the dictates of powerful businessmen closely linked to Zaken. Zaken demands that, as part of the deal her lawyer is attempting to broker, she will not be asked to reveal any information prior to her own investigation, and that she not be made a state witness.