Corruption Indictment Could Force Germany to Halt Sub Sales to Israel

The German conglomerate, ThyssenKrupp Marine Systems is liable to lose Israel as a customer if it turned out that corruption was involved in the submarines case.

The Germany government will not be able to export three more submarines to Israel if indictments are filed in the submarines case (case 3000). The Federal Security Council of Germany had approved the submarine deal last year with a clause allowing its cancellation if it turned out that corruption was involved.

The affair “is liable to cost ThyssenKrupp a major customer (Israel) and the federal government will find it difficult to give export permits for submarines if it is proven that there was corruption in the process,” German Newspaper Handelsblatt report was quoted by Globes Tuesday.

According to the deal that was signed last year, Germany had agreed to cover one-third of 1.5 billion euros for the delivery of six submarines. Israel Prime Minister Benjamin Netanyahu had also wanted to include four anti-submarine ships in the deal but was shelved following an opposition from the German defense officials.

The Israeli police last week had said that it had gathered sufficient evidence in investigation to indict former senior politicians and Israel Defense Forces' officers as well as close associates of Prime Minister Netanyahu.

According to the Israeli police's recommendations published last week, it is suspected that the appointment was initiated by former National Security Council deputy head Avriel Bar-Yosef and former Israeli navy commander Eliezer ("Chayni") Marom, Globes reported.

"We are aware of the investigations being conducted by the State Attorney's Office in Israel concerning the final decision about the contract (current procurement of warships and future procurement of submarines, A.O.)," the German government was quoted by the news daily.

"The investigations are not over, and are an internal Israeli affair,” the German government stated.