Sharon's son guilty in funds scandal


           Tuesday 15 November 2005, 11:58 Makka Time, 8:58 GMT    

                        Omri Sharon has been charged with fraud and perjury
                       


                    
            The son of Israeli Prime Minister Ariel Sharon has pleaded guilty in 
            an Israeli campaign funds scandal that could pose a challenge to the 
            Israeli leader before expected early elections. 
            Omri Sharon, a Likud Party lawmaker and key adviser to his father, 
            had previously said he would argue in his defence.
            He was accused on Tuesday of fraud, breach of trust and perjury - 
            charges carrying a maximum sentence of seven years in prison.
            Although no charges were brought against the prime minister over the 
            case, the scandal has embarrassed him at a time when he faces tough 
            political battles.
            Allegations that shell companies were set up to funnel foreign 
            donations to Ariel Sharon's successful 1999 race for the right-wing 
            Likud party leadership fuelled political opposition to the prime 
            minister.

            Illegal funding
            Foreign funding of political campaigns is illegal in Israel.

            The scandal has embarrassed Sharon at a fragile political time
            Sharon had denied any wrongdoing in the funding case, saying his two 
            sons alone handled financing for his 1999 primary campaign.
            Attorney-General Menachem Mazuz decided in February against 
            indicting the prime minister, citing lack of evidence after a 
            three-year investigation.
            Related charges against two of Sharon's former senior advisers were 
            dropped.
             
            Sharon is expected to face early elections next year as a surprise 
            leadership change in the Labour party, a key partner, has brought 
            his ruling coalition to the verge of collapse.
            Elections are due in November 2006.
                  Reuters