The procurement of German-made vessels under the previous Netanyahu-led government is at the centre of a major corruption probe
January 26, 2026 13:02
The state commission of enquiry examining the so-called "submarine affair" has identified "systemic failings" in Israel’s defence procurement process.
The affair, also known as Case 3000, centres on the purchase of three Dolphin-2 submarines and four Sa'ar 6-class corvettes from German shipbuilder ThyssenKrupp under the previous Netanyahu-led government in 2016.
Allegations of significant corruption in the tendering process, including that senior figures accepted bribes to skew the decision in the firm’s favour, led to a public enquiry, launched in 2022 in the Lapid-Bennett government.
ThyssenKrupp has consistently denied any allegations of wrongdoing, saying that bribery is "not a way to do business" and pointing to the implementation of its internal anti-corruption policies.
Indeed, the case initially formed part of the corruption investigation against Netanyahu himself, which has since been limited to three unrelated cases.
The prime minister was later discounted as a suspect, though his cousin and personal lawyer, David Shimron, remains under scrutiny after acting for the German firm in Israel. Shimron denies any wrongdoing.
The state commission concluded that the $2 billion deal, and Jerusalem's approval of ThyssenKrupp's sale of further vessels to Egypt, were marred by "systemic failings".
"Decisions by the political leadership must be made through an organised process, in which professional agents participate and considerations, political and professional, are taken into account… This was not the case in the naval vessel affair," stated its report.
"The handling of the sale of weapons systems by allies to third parties - a sensitive strategic issue - was conducted in chaos and without clear direction, in a manner that endangered state security."
It also found that "conversations and understandings" between ministers and the company "were not documented".
And it criticised Netanyahu for his use of the National Security Council to advance the purchase, claiming the prime minister “sidelined the government and neutralised its ability to influence issues related to the core of the State of Israel’s national security and military development”.
The commission did not assign any individual responsibility for the scandal, but called on the government to formally set out its security priorities and "formulate a multi-year plan accordingly" to inform future procurement decisions.
Yair Lapid, now leader of the opposition, said that the findings “prove once again that the most sensitive security issues of the State of Israel were managed with destructive negligence and amateurishness”.
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