«Israeli» Submarine Affair: Germany Halts Deal Due to Corruption Probe

Local Editor

A German National Security Council said on Tuesday morning that the signing of a memorandum of understanding on the sale of three submarines to the "Israeli" entity has been postponed.

The official's announcement came following a report in the "Israeli" daily Yedioth Ahronoth that Germany postponed the signing of the memorandum in light of the "Israeli" entity's investigation into possible corruption in the deal. According to the daily, the signing of the memorandum was meant to take place next in Germany, but the event had been postponed indefinitely.

A number of senior officials were placed under house arrest on suspicion of bribery and fraud in the affair, dubbed Case 3000. The case involves two transactions to enlarge the entity's navy: one for the purchase of three submarines, the other for the purchase of missile boats to protect Israel's natural gas platforms at sea.

At the end of last month, the Der Spiegel weekly reported that Germany's national Security Council authorized the sale of three submarines to the "Israeli" entity.
According to the report, the German government included a clause into the agreement allowing it to cancel the deal if the allegations in the case that has been dubbed "Case 3000" prove to be true.

On Monday it emerged that businessman Michael Ganor, who is at the center of the submarine scandal and who brokered the agreement between the entity and the Germany shipyard Thyssenkrupp, is in the process of striking a deal to become a state witness.

Sources involved in the case say that Attorney General Avichai Mendelblit gave prosecutors a green light to reach a state witness agreement with Ganor. Ganor's lawyer, Nati Simhoni, resigned due to these contacts. Prosecutors were 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.

After receiving this information, police summoned Monday evening former "Israel" Navy commander Eliezer Marom for urgent questioning, perhaps in an effort to try to verify some of Ganor's information. Marom is suspected of taking bribes.

Ganor's detention was extended with his consent until Thursday, when he will be released from house arrest. The arrest of 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.

Aside from Ganor, Bar Yosef, and Marom, the suspects in the case include David Shimron, Netanyahu's personal lawyer and relative, who represented Ganor when the submarine deal was reached. Another suspect, Ronen Shemer, an attorney in Ganor's firm, is suspected of shredding documents.

Source: News Agencies, Edited by website team