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Aerospace / Defense / Security
Israel
Nationality of Foreign Officials: Azerbaijan
Summary of Allegations:
Israeli police are investigating allegations involving potential corrupt acts by Aeronautics Defense Systems in order to obtain a major contract with a "significant customer," though details of the allegations remain under a gag order.
The allegations are likely to be related to an ongoing investigation of the company by the Israeli Defense Ministry that began in September 2017. That investigation was opened after the company sent a team to Baku, Azerbaijan, in July to demonstrate the use of a drone equipped with a small explosive. Complaints alleged that Azerbaijani officials asked the company to attack a manned Armenian army post; two senior team members attempted to carry out the attack but failed to hit the targets. Aeronautics denies that it carried out demonstrations on live targets. In August, Aeronautics reported to the Israeli stock exchange that the Defense Ministry suspended the company's export license for the firm’s Orbiter 1K model UAV to a single, significant customer in a foreign country. Aeronautics stated that the potential contract was for NIS 71.5 million (USD 20 million) over the next two years.
Approximate Alleged Payments to Foreign Officials:
Business Advantage Allegedly Obtained:
Agencies: Israel: National Police
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
The Israeli Police's Unit of International Crime Investigations (Yahbal) is investigating Aeronautics with respect to "a deal with a significant customer," it announced on 14 November 2017. A court imposed a gag order on the case to prevent the identity of the customer from becoming public.