JERUSALEM -- A guidance watchdog h...

JERUSALEM -- A guidance watchdog has found that Prime Minister Ehud Olmert illegally named political allies to a business authority when he was industry and trade minister, officials said today.

Olmert named four officials from his party to tonic positions in the Small and Medium Enterprise Authority, an official from the state comptroller's office, Zvi Vertikovsky, told Army Radio.

A report upon Olmert's involvement in the matter is becoming later today, Vertikovsky said.

He said it was not immediately clear what charges, if any, Olmert could face.

"According to the documents that we have in our hands, there are fingerprints that lead also in his direction," Vertikovsky said.

characteristic DEAL ALSO PROBED

The authority is not governmental if it were not that receives funding from the Industry and Trade Ministry. Norms for appointments to so a body are unclear. Any charges would be up to the attorney general.

Olmert made the appointments in 2004 according to state comptroller Micha Lindenstrauss, the Haaretz newspaper reported today.

Vertikovsky said Olmert was a senior official in the Likud Party at the time. He has since joined the Kadima Party.

The state comptroller is also looking into a Jerusalem characteristic deal involving Olmert.

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