Jerusalem - Israeli fraud squad detectives questioned outgoing Prime Minister Ehud Olmert for the eight time in recent weeks on Thursday, regarding corruption affairs in which the premier is suspected of being involved.

It was the Israeli leader's first interrogation since he resigned the premiership on September 21.

Israel Army Radio reported that the two-hour session at Olmert's Jerusalem office focused on allegations that, as trade and industry minister he pushed for favourable responses to be given to grant applications submitted to the ministry's investment centre by clients of his former law partner.

Olmert was also questioned on allegations that he bought a house in an upscale Jerusalem neighbourhood for far below the market price in return for helping the building contractor receive construction permits form the Jerusalem authorities.

Previous rounds of questioning undergone by Olmert centered on accusations that that in the years before he became prime minister he received hundreds of thousands of dollars, most of it in envelopes full of cash, from US-Jewish fundraiser Morris Talansky.

He has also been questioned regarding suspicions that he double-, and even triple-, billed sponsors for overseas visits, and used the extra money to pay for trips for his family.

Police have already recommended that he be indicted on this two allegations, but a final decision rests with Attorney-General Menahem Mazuz.

Olmert has denied all the accusations against him, and although he admitted receiving funds via Talansky in what has become known as "the money envelopes" affair, denies the sums mentioned, and insists it was legitimate reimbursements for food and accommodation.

But the ongoing investigations nonetheless further eroded the premier's already low popularity and last month he tendered his resignation to President Shimon Peres, days after his Kadima party elected Foreign Minister Tzipi Livni as the new party head.

Olmert however will remain as interim prime minister until Livni succeeds in forming a new government, or, if she is unable to, until elections are held. (dpa)