Wednesday, October 28, 2020

Israel Police recommend charging Netanyahu associate with bribery in ‘Submarine Affair’

-

Israel Police has recommended charging Miki Ganor, an associate of Israeli Prime Minister Benjamin Netanyahu, with bribery for his role in Case 3000, often known as the “Submarine Affair”.

The case refers to a series of allegations against close associates of Netanyahu, who it is claimed lobbied Israeli defence officials to sign deals with German shipbuilding firm ThyssenKrupp. The multi-billion-shekel deals, many of which date back to 2009, would have seen Israel purchase naval vessels and submarines from the German firm. Netanyahu’s associates, however, are suspected of “skimming” millions of shekels off the top of the deals for their personal profit.

One of these associates is Miki Ganor, a former sales representative of ThyssenKrupp who turned state witness in 2017. Under the agreement, Ganor would testify for the prosecution in exchange for only having to serve one year in prison and pay a ten million shekel ($2.7 million) fine for his role in facilitating the deals.

However, in a shock move in March, Ganor presented himself to the police and asked to change his previous statement, despite standing by it during 50 meetings over the course of the investigation. He was subsequently arrested for “obstructing an investigation with false information”, while Israel’s State Prosecutor threatened to rescind his partial immunity.

- Advertisement -

Having had his immunity rescinded, the Israel Police’s Lahav 433 anti-fraud unit today recommended that prosecutors indict Ganor on five counts of bribery and one count of receiving an illicit gift, in addition to six counts of money laundering, the Times of Israel reported, citing Hebrew-language daily Yedioth Ahronoth.

The Israeli daily added that “despite the recent developments, all the recommendations against the other suspects in the case have remained unchanged”. One of these other suspects include Netanyahu’s cousin David Shimron, who represented Ganor in the deals and allegedly promised to use his influence over the prime minister to secure the sales, in return for a “hefty cut” of the money exchanged.

Other close associates of Netanyahu have also been implicated in the affair: another of his cousins, Nathan Milikowsky; his former bureau chief David Sharan; his former pick for National Security Adviser Avriel Bar-Yosef; former head of the Israeli Navy Eliezer Marom; and former government minister Eliezer Sandberg.

Although Netanyahu was previously only being interviewed as a witness in the case, new details emerged in March which prompted Israel’s state prosecution to consider opening a corruption investigation against him. This came after the State Comptroller’s Office found that Netanyahu and Milikowsky were shareholders in Texas-based steel factory SeaDrift, which was later absorbed into GrafTech International, a long-time supplier of ThyssenKrupp.

- Advertisement -

Netanyahu allegedly did not disclose his shareholdings in GrafTech, and though he claims he sold his shares to Milikowsky after he was elected prime minister in 2009, the Comptroller’s Office said he had a “clear conflict of interest” at the time the sale was made. It is also alleged that Netanyahu bought the shares for sub-market value, allowing him to make a four-fold profit on the sale of his stake in the company.

If an investigation is launched, this will be the fourth corruption investigation against the prime minister. Israel’s Attorney General Avichai Mandelblit announced in February that Netanyahu will stand trial for his role in three other cases – dubbed Case 10002000 and 4000 respectively – for fraud, bribery and breach of trust.

He is scheduled to appear in court on 2 and 3 October.

MUST READ

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Fundraiser Elliott Broidy pleads guilty in foreign agent case linked to 1MDB

Major Republican Party and Trump fundraiser Elliott Broidy pleaded guilty Tuesday to acting as an unregistered foreign agent, admitting to accepting millions...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Actress Felicity Huffman complete full sentence for role in college admissions scam

Felicity Huffman has completed her full sentence for her involvement in the college admissions scandal. As of Sunday, she has finished her sentence, which included jail...

Former Blue Bell Creameries CEO indicted for fraud linked to 2015 listeria outbreak

The former president and CEO of Blue Bell Creameries L.P., a Texas ice cream company, was indicted Tuesday on wire fraud charges in connection with a scheme...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks