Sharon regains ground despite loan scandal

Israeli Prime Minister Ariel Sharon's scandal-ridden campaign for re-election showed recovery in opinion polls today following…

Israeli Prime Minister Ariel Sharon's scandal-ridden campaign for re-election showed recovery in opinion polls today following a weekend of violence.

Eight Palestinians, including four gunmen who infiltrated Israel, and two Israelis were killed in violence Israeli officials said was on the rise ahead of the Israeli election on January 28th.

Surveys today in the Israeli dailies Yedioth Ahronothand Maarivshowed Mr Sharon's right-wing Likud party forecast to win up to 33 seats in the 120-member parliament.

Just last week, the Likud's predicted victory was whittled down to as few as 27 seats on news Israeli police were investigating an allegedly illicit loan to Mr Sharon to fund his 1999 campaign.

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Israeli political commentators said some voters appeared to have rallied around the ex-general after the head of the Central Election Committee pulled the plug on a speech Mr Sharon gave on Thursday night to rebut the allegations against him.

The decision to cut short Mr Sharon's broadcast - on the grounds he violated laws against campaign propaganda - and the widespread media coverage of the scandal surrounding a $1.5 million loan from a South African businessman deepened feeling the aging leader was unfairly under attack, they said.

Israeli law bans political funding from abroad, but Mr Sharon's last two predecessors in office have also been subject to police inquiries for alleged funding irregularities or corruption.