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Israel Cabinet to probe submarine procurement corruption

Mr. Miki Ganor, ThyssenKrupp's representative in Israel, has been charged with bribery.
  • The Israeli cabinet voted to establish a formal inquiry into the "submarine affair," which concerns a multibillion-shekel deal to acquire vessels from Thyssenkrupp
  • David Shimron, Netanyahu's personal lawyer and cousin, was charged with money laundering in connection with the 2012 naval procurement

Israel’s Cabinet on Sunday, January 23, voted to establish a formal inquiry into a 2012 naval procurement that has been marred by corruption allegations implicating former military brass and close associates of former premier Benjamin Netanyahu.

Netanyahu has not personally been accused of wrongdoing in the so-called “submarine affair”, which concerns a multibillion-shekel deal to acquire naval vessels from German industrial giant Thyssenkrupp.

Prime Minister Naftali Bennett, who ousted Mr Netanyahu in June, abstained in the vote setting up the inquiry, reportedly citing concerns that it would interfere with the military procurement.

In a tweet before Cabinet approved the probe, Foreign Minister Yair Lapid called the submarine affair “the most serious security corruption case in the history of Israel”.

“It is necessary to turn over every stone to reach the truth,” he said.

Defense Minister Benny Gantz was also a strong supporter of the probe.

David Shimron, Netanyahu’s personal lawyer and cousin, has been charged with money laundering in connection with the 2012 procurement.

Miki Ganor, Thyssenkrupp’s representative in Israel, has been charged with bribery.

The newly established commission will look at the procurement process, but will not investigate defendants currently on trial.

This month, Gantz announced a separate agreement to buy three more submarines from Thyssenkrupp in a 10 billion-shekel ($3.17 billion) deal.