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Investigators in Israel have been questioning the country’s prime minister for a third time over corruption allegations.

Police and judicial sources say the affair concerns hundreds of thousands of dollars of questionable payments made to Ehud Olmert by an American businessman.

Olmert denies any wrong-doing, saying the money was used legitimately to fund election campaigns.

He has, though, promised to step down if indicted, and his Kadima party will hold leadership elections in September following pressure from his coalition partners.

New York businessman Morris Talansky has testified that he gave Olmert 150,000 dollars in cash, including loans that were never paid back.

Talansky claims some of the money went on expensive luxury items. He is to be cross-examined by Olmert’s lawyers next Thursday.

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