The resignation of Israel’s armed forces chief over failure to win last summer’s Lebanon war dealt a fresh blow on Wednesday to Prime Minister Ehud Olmert, already weakened by political scandal. Israeli media described Lieutenant-General Dan Halutz’s decision to quit as an earthquake and speculated whether it might ultimately trigger a domino effect toppling Olmert and Defence Minister Amir Peretz.The former fighter pilot’s resignation was announced hours after Israel’s state prosecutor ordered a criminal probe into Olmert’s role in the privatisation of Israel’s second biggest bank in 2005, when he was finance minister.“The investigation of Olmert and Halutz’s resignation in the wake of the Lebanon war could rock the foundations of the government,” political analyst Hanan Crystal said on Israel Radio.Olmert has denied any wrongdoing in the sale of Bank Leumi or in another case, now being considered by Israel’s attorney-general, into the alleged appointment of cronies to a government-funded business authority.His troubles could weigh heavily on Washington’s new push to revive Israeli-Palestinian peacemaking, efforts that it hopes can bolster Palestinian President Mahmoud Abbas in his power struggle with the governing Hamas.Mushir al-Masri, a senior Hamas legislator said in Gaza that investigations against Olmert and Halutz’s resignation “prove the Zionist government is weak” and should spur Palestinians “to continue resistance and jihad.” Balloting is still three years away but storm clouds are gathering quickly on Olmert’s political horizon.-Jeffrey Heller
