Bribery scandal threatens Sharon

An Israeli businessman has been charged with offering hundreds of thousands of dollars in bribes to Israeli Prime Minister Ariel Sharon.

The charges against property developer David Appel relate to a property deal in Greece involving Mr Sharon's son.

The Israeli leader was questioned last year over the affair but denies any wrongdoing.

The BBC's David Chazan in Jerusalem says the charges could mean serious trouble for Mr Sharon.

Israeli media are speculating about whether he will face charges and if so whether that would force him to leave office, our correspondent says.

The police investigation has focused on the relationship between Mr Appel and Mr Sharon's son Gilad.

The businessman has also been charged with offering bribes to Deputy Prime Minister Ehud Olmert to promote the project when he was mayor of Jerusalem.

Mr Appel is also said to have helped Mr Sharon campaign for the leadership of the right-wing Likud party.

In what has become known in Israel as the "Greek island affair", the property developer is alleged to have paid Gilad to work as a consultant for a tourism project in the late 1990s.

Prosecutors allege that money was in effect used as a bribe for Mr Sharon, who was then foreign minister.

There has been no reaction as yet from either Mr Sharon or Mr Olmert to the indictment.

Opposition MPs have already been calling for Mr Sharon's resignation.