In a deepening scandal that could topple the Israeli government, Prime Minister Ehud Olmert admitted last night to accepting cash payments from a Long Island businessman, but insisted they were not bribes. "I never took bribes. I never took a penny for myself," Olmert said in a statement broadcast late last night in Israel. "Even though the law does not require me to do this, I will resign from my job if the attorney general decides to issue an indictment against me. "I hope and believe that we will not reach this stage." At the center of the sensational scandal is millionaire financer Morris Talansky, who lives in tony Woodmere, LI. His involvement in the affair was first reported by The Post this week. Israel's Channel 2 reported last night that Talansky gave Olmert "hundreds of thousands of dollars" during a series of meetings between 1999 and 2003. It is unclear what the money was for. Talansky said in Jerusalem yesterday that he gave a statement to police during a Passover visit to Israel. Flashing a smile, he insisted, "I never was involved in politics," before telling reporters "I don't understand, what's the big thing?" He described his relationship with Olmert as "very, very friendly," adding, "I used to meet him all the time at dinners in New York." Until yesterday, a judge had barred Israeli media from releasing Talansky's name or publishing his photo out of fear it could hinder the investigation. The order was lifted last night only after police and judicial officials petitioned the court, which ruled that the order lost some significance after Talansky's name appeared in The Post and other foreign media reports. A gag order on additional details remains in effect until Sunday. Olmert said that Talansky - CEO of the financial firm Global Resources Group - began raising funds for him in 1993, when he was running for mayor of Jerusalem. He said Talansky helped him out again during a second mayoral campaign in 1998, and when he ran for Likud Party leadership in 1999 and 2002. "He also helped me cover deficits that accumulated during elections in which I took part," Olmert said. Talansky also served as the treasurer for the Long Island-based New Jerusalem Foundation, and Olmert's rivals have accused the PM of using the charity's funds for political purposes. "These are uneasy days for the Israeli public, for me and for my family," said Olmert, who was questioned for an hour last Friday by investigators. The scandal has not changed President Bush's plan to travel to the region next week to help broker peace between Israel and the Palestinians. "This is a matter for the Israeli judicial system," said White House spokesman Gordon Johndroe. If Olmert were to step down, the list of possible successors would likely include former PMs Ehud Barak, the current defense minister and Labor Party leader, and Likud Party leader Benjamin Netanyahu.

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