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Israeli army chief under attack over share sell-off
Tue 15 Aug 2006 8:11 AM ET

JERUSALEM, Aug 15 (Reuters) - Israel's armed forces chief came under political fire on Tuesday after a newspaper reported he sold off a stock portfolio just hours after Hizbollah abducted two Israeli soldiers in a raid that triggered a month-long war.

Lieutenant-General Dan Halutz, acknowledging the sale in comments to reporters, denied any impropriety.

The Maariv daily said Halutz went to his bank branch and sold shares worth 120,000 shekels ($27,460) three hours after the soldiers were seized by the Lebanese guerrilla group on July 12.

Key share indexes in Israel fell around 12 percent at the outset of fighting between Israeli forces and Hizbollah after the abduction. Share prices gradually recovered and now stand slightly below pre-war levels.

"It was my portfolio of shares, on which I had lost 25,000 shekels," Maariv quoted Halutz as saying.

"It is true that I sold the portfolio on July 12 but it is impossible to link that to the war. At the time, I did not expect or think there would be a war," he said, according to Maariv.

A day after the abduction, Israeli aircraft carried out a major attack in Lebanon, bombing runways at Beirut airport.

In separate comments to reporters, Halutz said: "This is a malicious, biased report. I do not know who is behind it and I do not plan to be dragged into a subject that besmirches my integrity."

Several legislators responded to the report by demanding Israel's attorney-general open an investigation. One lawmaker called for Halutz's resignation.

But market analysts said it did not appear Halutz had broken any insider trading laws.

Halutz has already been attacked by some Israeli military affairs commentators over his handling of the campaign against Hizbollah.

They charged the former fighter pilot put too much emphasis on an air war in Lebanon in the early stages of fighting instead of sending in large contingents of ground forces to try to halt rocket attacks on northern Israel.

http://today.reuters.com/News/Crises...oryId=L1599689

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