Olmert denies allegations but will quit if indicted

JERUSALEM -- Israeli Prime Minister Ehud Olmert denied fresh accusations that he illegally accepted hundreds of thousands of dollars from a U.S. citizen but said Thursday night that he will step down if he is indicted.

The latest investigation into corruption allegations involving Olmert has distracted Israel for nearly a week and has the potential to derail delicate peace talks with the Palestinians.

Olmert made his statement in a nationally televised speech from his official residence after a court lifted a gag order in the case. According to police suspicions, Olmert took hundreds of thousands of dollars in illicit contributions from Jewish businessman Morris ''Moshe'' Talansky.

Army Radio said the suspicions concern money that Olmert allegedly received from 1999 to 2003, when he was mayor of Jerusalem and later minister of industry and trade.

Olmert said a lawyer handled his finances and everything was legal. ''I am looking at all of you in the eye, and I say I never took bribes, I never took a penny for myself,'' he said.

But he said he would not fight to stay in office if charged.

The White House said the case would not alter President Bush's planned visit to Israel next week, calling the investigation ''a matter for the Israeli judicial system.''