Israeli State Prosecutor Eran Shendar Tuesday ordered Israel police to launch a criminal investigation against Israeli Prime Minister Ehud Olmert over his alleged role in the Bank Leumi affair, Israeli daily Yedioth Ahronoth reported on its website.

According to the report, it is suspected that during his tenure as deputy finance minister, Olmert took bribery directly or indirectly from his two friends.

Israeli newspaper previously reported that Olmert is suspected of interfering with the tender for the controlling interest in the Bank Leumi, one of Israel's major banks, to benefit his close personal associates.

Israeli Attorney General Menachem Mazuz had ordered the police to start a preliminary investigation into the case as early as Oct.29, 2006.

The investigation was ordered following the State Comptroller's Office published allegations that the Olmert committed bribery offenses in the process of a sale of a majority share in the Bank Leumi.

State Comptroller Micha Lindenstrauss, who began looking into the allegation about a year ago, recommended that Mazuz examine the evidence and consider a criminal probe.

The criminal probe into Olmert finally started despite his denial of any wrongdoing in the sale of Bank Leumi in October through his office.

Editor: Yan