Israeli Prime Minister Ehud Olmert’s lawyers say their cross-examination of a key witness will show that allegations that Olmert accepted thousands of dollars in cash for a lavish lifestyle are false.

Lawyer Amir Dan says the questioning of American businessman Moshe Talansky on Thursday will blow holes in the accusations against Olmert.

Talansky has said he handed Olmert cash-stuffed envelopes in the years before he became prime minister.

The accusations made in May have seriously damaged Olmert’s credibility among Israelis. The resulting outrage prompted Olmert’s Kadima Party to agree to hold primaries in September.