IMI manufactured Uzi sub-machinegun 390 (R).
(photo credit: Reuters)
Israeli defense contractors are being ordered to establish a “compliance
program” aimed at preventing corruption and – in particular – the possibility of
offering bribes to foreign government officials.
Earlier this month,
India announced that it was barring Israel Military Industries from competing in
government tenders amid allegations that the Israeli government-owned company
was involved in a local bribery corruption scandal. IMI has rejected the
The Defense Ministry has ordered Israeli companies to enact
the compliance program in line with new business regulations that Israel is
trying to adopt as a member of the OECD, which the country joined last
Ministry director-general Udi Shani has ordered its Export
Licensing Division not to issue export licenses to companies that do not adopt
the new program. Several dozen companies, the ministry said, had already
formulated a program and others were currently in the process of doing
“Signing a commitment to enact a program is a condition for receiving
an export license,” ministry officials said Sunday.
are aimed at setting standards for the way companies do business, and to promote
ethics and transparency throughout the industry. These programs also promote
awareness of international conventions that could impact business dealings in
IMI was blacklisted for 10 years, together with five
Indian defense firms, for allegedly bribing an Indian bureaucrat. Due to the
decision, IMI has been forced to put on hold multimillion dollar plans to set up
a fuse production line, according to Indian news reports.