A German-Israeli submarine corruption scandal which has seen seven Israeli officials arrested is threatening to delay the signing of a new memorandum of understanding (MOU) for Israel’s acquisition of additional three diesel-electric submarines.
According to a report from Israel’s Haaretz which cited a National Security Council official, Germany has postponed indefinitely the sale of the three submarines.
The deal was expected to be signed in Germany next week.
A criminal investigation into reports of corruption on Israel’s acquisition of German-built, nuclear-capable submarines is putting Israel’s prime minister Benjamin Netanyahu in spotlight as it is believed that a Israeli representative of ThyssenKrupp hired Netanyahu’s cousin and personal attorney David Shimron for services.
Israeli police, in a case dubbed Case 3000, are now investigating whether Shimron lobbied Israeli defense officials on behalf of the German shipbuilder.
Among the seven arrested so far in the case is also the former commander of the Israel Navy Eliezer Marom.
Israel is already operating five German-built Dolphin-class submarines with another one set to join the fleet in 2018.