Published On: Tue, Jul 18th, 2017

Submarine Scandal: Germany Postpones Deal Due to Israeli Corruption Investigation

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Another dramatic development in the submarine affair against the backdrop of recent police investigations and arrests. Germany had decided to postpone the signing on the future memorandum of understanding as part of the deal, a National Security Council official said on Tuesday morning.

The announcement came following a report in the Israeli daily Yedioth Ahronoth that the signing of the memorandum was meant to take place in Germany, but the event has been postponed indefinitely, in light of Israel’s investigation into possible corruption in the deal.

The affair, known as Case 3000 involves two transactions to enlarge Israel’s navy. One for the purchase of three submarines, and the other for the purchase of missile boats to protect Israel’s natural gas platforms at sea. A number of top ranked officials were placed under house arrest on suspicion of bribery and fraud in this case.

Yesterday it was reported that the main suspect in the affair, the German shipyard ThyssenKrupp representative, Miki Ganor, is in the process of striking a deal to become a state witness.  On Monday, Attorney General Avichai Mandelblit arrived at Lahav offices at 433 and was briefed on developments in the affair.

A law enforcement officials said, “Ganor’s transformation into a state witness will be a confirmation that the submarine deal was a corrupt deal.” If the contacts ripen to turn him into a state witness, this could lead to the cracking of the 3000. Ganor’s lawyer, Nati Simhoni, resigned due to these contacts. Ganor hired the services of attorney Eli Zohar. Ganor’s new lawyers refused to answer questions on the subject.

On Monday, Attorney General Avichai Mandelblit arrived at police Lahav offices at 433 and was briefed on developments in the affair. Prosecutors now trying to examine and verify the partial information Ganor has provided, which they will not be able to use if the deal is not signed.

Investigators said yesterday that Prime Minister Benjamin Netanyahu is not suspected of the affair at the moment.

After receiving this information, police summoned Monday evening former Israel Navy commander, Maj. Gen. (res.) Eliezer Marom (Cheney), for urgent questioning, perhaps in an effort to try to verify some of Ganor’s information. Marom is suspected of taking bribes.

It may also directly and immediately complicate Avriel Bar Yosef,  who was the acting head of the National Security Council and played a central role in preparing the opinion concerning the purchase of the submarines, was extended by four days.

In light of the developments, Marom has interrogated again last night, even though he was released from the house arrest conditions imposed on him. The police suspect that Ganor was appointed as a shipyard representative by an illegal intervention by former Marine commander Marom, And that he transferred bribes in exchange for his appointment.

 

tAlso suspects in the case include David Shimron, Netanyahu’s personal lawyer, and family member, who represented Ganor when the submarine deal was reached.

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