How Israel's purchase of German subs became a corruption scandal

Who is involved in the case and how do they relate to Prime Minister Benjamin Netanyahu?

November 8, 2018 14:54
2 minute read.
How Israel's purchase of German subs became a corruption scandal

David Shimron, Eliezer Marom, Avriel Bar-Yosef, Modi Zandberg, Sharan, Shai Brosh. (photo credit: FLASH90)


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The Israel Police announced on Thursday that it will recommend six suspects be prosecuted: Prime Minister Benjamin Netanyahu’s lawyer, confidant and relative David Shimron; former commander of the Israel Navy Eliezer Marom; Avriel Bar-Yosef, former deputy head of the National Security Council; Brig.-Gen. (res.) Shai Brosh; former minister Modi Zandberg; and David Sharan, former chief of staff of the Prime Minister’s Office.
The findings released by the police on Thursday are as follows:

During the relevant period, Avriel Bar-Yosef served as the director of the Knesset Foreign Affairs and Defense Committee and later served as deputy head of the National Security Council. Police suspect that Bar-Yosef helped Miki Ganor, with the assistance of Eliezer Marom, to become the Israeli representative of the German corporation ThyssenKrupp, replacing the former representative Shaike Barkat. Marom received sums of money from Ganor under the disguise of consulting services, allegedly provided to Ganor, amounting to NIS 600,000.

Bar-Yosef then allegedly acted within the framework of his duties to promote the purchases of submarines and received fees from the company, either directly or through his close associate and friend Shai Brosh.

Brosh, a private businessman during the relevant period, was intentionally introduced by Bar-Yosef to act as a mediator between himself and Ganor during the submarine purchase transaction, not to blow the connection between the two. Ganor and Brosh signed an agreement in the amount of 120,000 euros, which was intended to cover the transfer of the bribe money, police suspect.

Bar-Yosef, Brosh and Marom are suspected of bribery, fraud and breach of trust, and conspiring to commit a crime. Brosh and Marom will also have to defend themselves against money laundering offenses and other lesser charges.

David Shimron, using his status and close affiliation with the prime minister and public officials, is suspected of acting on Ganor’s behalf as a representative of the German corporation to promote the deal between Israel and the corporation. Shimron allegedly received NIS 270,000 in stages for “opening doors” and influencing public employees to promote Ganor’s business in the purchase of the submarines. The payments were defined as a “reward for success.”

Police suspect Shimron of bribery and money laundering.

Former minister Modi Zandberg allegedly promoted Ganor’s business as a representative of the German corporation in Israel, while serving as chairman of the United Israel Appeal (Keren Hayesod). Zandberg allegedly also took advantage of his past and present positions to “open doors” for Ganor, and received information from employees and elected officials in connection with the submarine transactions. In exchange, Zandberg received NIS 100,000 from Ganor over several payments.

Police suspect that David Sharan, who served as chief of staff of then finance minister Yuval Steinitz and later as chief of staff of the Prime Minister’s Office, also acted in favor of Ganor’s interests in the submarine transactions and received NIS 130,000 from him between 2013 and 2016. The payments were made through a businessmen close to Sharan in an effort to disguise the connection between the two.
In addition, Sharan is suspected of raising funds for the election campaign of Steinitz in 2012.

Zandberg and Sharan are accused of bribery, fraud, breach of trust. Sharan also has conspiracy to commit a crime, money laundering and offenses under the Elections Law charges against him.

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