After deliberating for a year and a half, Attorney General Avichai Mandelblit has decided, just before the end of his term, to indict drones company Aeronautics and company officers.
A gag order has been imposed on all the details of the indictment. "Globes" has learned that the Economic Department of the State Attorney's Office had already reached agreement in principle with Aeronautics on a plea bargain specifying a fine and community service only, but because of objections by the company to some of the terms, the file lay on the Attorney General's desk for a long time.
Sources inform "Globes" that the delay arose because of the Attorney General's fear that proceeding with the case would cause significant diplomatic harm to the State of Israel as a result of the trial and the hearing of witnesses brought from abroad to substantiate the company's claim of selective enforcement.
Aeronautics is an Israeli defense company that produces intelligence gathering solutions based on unmanned systems (such as UAVs). Aeronautics is based in Yavneh, and its CEO (who is not involved in the affair) is Moshe Elazar, who previously held a senior managerial post at Rafael Advanced Defense Systems.
Rafael is a shareholder in Aeronautics. Two years ago, Rafael and businessperson Avihai Stolero bought the company in an NIS 850 million deal. Stolero and Rafael each own 50%.
The acquisition took place two years after Aeronautics was floated on the Tel Aviv Stock Exchange at a higher valuation of some NIS 1 billion. The company's share price declined because of poor results and the company's entanglement in a security affair in a foreign country. After several entities expressed interest in buying it, the company was eventually sold, as mentioned, to Rafael and Stolero, and delisted from the Tel Aviv Stock Exchange.
Rafael said in response "The indictment refers to events involving officers of the company that took place a long time before it was acquired by Rafael, and none of the current officers of the company has any part in the affair."
Despite the decision to file an indictment against Aeronautics and former officers of the company, they have not been convicted in law, and are entitled to the presumption of innocence.
Published by Globes, Israel business news - en.globes.co.il - on December 29, 2021.
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