Tel Aviv: Israeli Premier Ehud Olmert, under investigation for his role in a bank sale, faced new allegations of corruption after media reports claimed he helped a political supporter receive a Government grant.

According to the allegations broadcast on Israel's Channel 10 news, Olmert allegedly used his influence while serving as trade and industry minister to ensure that a member of the Likud Party, to which he belonged at the time, received a government grant for 7,500,000 shekels (about $1.7 million) for a mushroom factory.

An official in the state comptroller's office said an investigation was being carried out into the activities of the trade and industry ministry, but said Olmert was not the direct target of the probe.