Israel U-Boat Affair: Corruption & Flaws in Procurement

by Chief Editor

An investigation into Israel’s procurement of submarines and naval vessels has revealed significant flaws in the country’s defense acquisition processes. The commission examined procedures related to the purchase of German-made submarines and corvettes for the Israeli Navy and found “systemic deficiencies…reaching to the core of the processes of military capability building and decision-making in the procurement of defense equipment worth billions of Shekels.”

Israeli Submarine Fleet of German Production

Israel currently operates five submarines built in Kiel, Germany, with a sixth expected to be delivered. In 2022, Israel and Germany finalized a deal worth billions for the purchase of three additional Dakar-class submarines, the first of which is slated for delivery within nine years by ThyssenKrupp Marine Systems (TKMS). These deliveries are controversial, as experts assess the submarines could theoretically be equipped with nuclear weapons.

The Israeli commission also investigated Israel’s handling of the sale of submarines by Germany to Egypt, finding that “the handling of the issue of the sale of defense equipment by allies to third countries – a strategically sensitive issue – was chaotic and without clear leadership, thereby endangering state security.”

Did You Know? In 2022, Israel and Germany reached a final agreement for the purchase of three additional submarines of the new Dakar class.

Commission Recommends Expert Consultations

To prevent future deficiencies, the commission recommends establishing a process ensuring that decisions regarding defense equipment are made only after consultation with experts.

Prime Minister Benjamin Netanjahu faced criticism for allegedly approving the sale of advanced submarines from the German company to Egypt without consulting with Israel’s security leadership. Netanjahu reportedly justified the decision by stating, “The State of Israel has secrets that only the Prime Minister and a handful of people know,” according to the Israeli newspaper Ha’aretz.

Allegations of Bribery

Alongside the investigation commission, a court in Tel Aviv is examining the affair. Indictments allege that several individuals received bribes to advance deals between ThyssenKrupp Marine Systems (TKMS) and the State of Israel. Those accused include associates of Netanjahu, but not the Prime Minister himself.

In June 2024, the investigation commission sent warning letters to several decision-makers, including Netanjahu, who stated the submarines are “a central foundation of Israel’s national security and a guarantee of its existence against Iran, which wants to destroy us.”

Expert Insight: The findings of this commission underscore the critical importance of transparency and rigorous oversight in defense procurement. The potential for systemic failures, particularly when dealing with strategically sensitive equipment and international partnerships, demands a robust process involving expert consultation and clear lines of authority.

Frequently Asked Questions

What did the investigation commission find?

The commission found “systemic deficiencies…reaching to the core of the processes of military capability building and decision-making” in the procurement of defense equipment worth billions of Shekels.

How many submarines does Israel currently have?

Israel currently operates five submarines built in Kiel, Germany, with a sixth expected to be delivered.

What was Prime Minister Netanjahu’s justification for approving the sale of submarines to Egypt?

Netanjahu reportedly justified the decision by stating, “The State of Israel has secrets that only the Prime Minister and a handful of people know.”

Given these findings, will Israel overhaul its defense procurement processes, and what impact might this have on future arms deals and regional security dynamics?

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