Unravelling Case 3000
July 12, 2017 | Expert Insights
On 11th July 2017 former, Israeli Navy commander Maj. Gen. (res.) Eliezer Marom was arrested by the Israeli Police in relation to the submarine (dolphin-class) case. The arrest was made a day after six suspects were detained in relation to the ongoing investigations of submarine case also known as Case 3000. Israel's former defense minister thinks Netanyahu will be indicted
Background
In November 2016 the police launched investigation against alleged tender bias in the procurement of submarines and patrol ships from ThyssenKrupp. The deal worth NIS 10 billion ($2.8 billion) was suspected to have been done without the knowledge of the then defense minister Moshe Ya'alon, IDF Chief of Staff Gadi Eisenkot and the director-general of the Defense Ministry. Prime Minister Netanyahu pushed for the deal following the ouster of Ya’alon.
In February 2017 State Attorney Shai Nitzan launched a full-fledged criminal investigation when Netanyahu’s involvement in the deal was suspected. The investigators uncovered transfer of millions of shekels from ThyssenKrupp to Michael Ganor a close associate of Prime Minister Benjamin Netanyahu as well as a lawyer who is suspected to be linked to Netanyahu.
A series of developments in the investigations led to six suspects being questioned for over 12 hours. On 10th July 2017 the police revealed two of the suspects to be former deputy head of the National Security Council Avriel Bar-Yosef and ThyssenKrupp’s Israeli agent, Michael Ganor. A joint statement by Israel Police and the Tax Authority revealed that the suspects were questioned over suspicions of fraud, bribery, tax evasion and money laundering. The Rishon Lezion Magistrate’s Court accepted the request of the police to detain Bar-Yosef and Ganor for additional four days while the lawyer was put under house arrest for three days.
Analysis
In the due course of the investigation the police obtained documents pertaining to ThyssenKrupp's activities with Isreali authorities regarding the acquisition of submarines and ships. The police suspect that the classification of "useful expenses," found in the document was intented to camouflage the bribe to Marom. Marom sentenced house arrest until Thursday.
Assessment
Our assessment is that the Case 3000 could result in the cancellation of the submarine deal inked with Germany. As the investigation comes to the fore, work ethics and conduct of public officials of Israel will be under further scrutiny. When bureaucrats compromise on their morals and duties towards the country, it is the country that suffers.
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