The amount of apparent fraud in the Navy Panther helicopter purchase episode is 17% of the total deal. According to a senior security source, the volume of the deal, in which 5 Panther helicopters were purchased from American-Eurocopter, reached $58 million. The helicopters were purchased in 1994 by the Ministry of Defense's Navy procurement delegation in order to replace French-made helicopters, in use until recently.
The special investigations unit at the Ministry of Defense, the National Fraud Unit and the Military Police are conducting a wide-scale investigation together with the FBI. It is suspected that Eurocopter defrauded Israel's Ministry of Defense at a volume of $10 million. The helicopters have already been delivered to Israel and are now being integrated into missions.
It is suspected that American-Eurocopter artificially inflated the volume of the contract by $10 million. The police and the Ministry of Defense are investigating suspicions that half the amount, or $5 million, was transferred to an Israeli arms merchant who is a senior reserves officer. Suspicions are the other $5 million was transferred to the American-Eurocopter agent in Israel, in return for his assistance and support of the deal.
The suspected arms dealer is a commodore admiral in the reserves, who has served in senior positions at both Navy bases and headquarters. The officer was responsible for the inspection of future Navy helicopters and examined several types of helicopter.
The police said in response that a team from the Fraud Unit, together with defense sources, have been investigating for some time suspicions of fraudulent sums received on the purchase of the five helicopters. The police refused to identify the suspects or confirm the suspicions.
The investigation began following a request for cooperation made by the US Department of Justice, which is responsible for the FBI, to Israel's Ministry of Justice. The investigation in Israel is being conducted in coordination with the US authorities.
The Panther deal was made by the Israel Ministry of Defense procurement delegation stationed in New York. The deal was concluded in November 1993. At that time, the commodore admiral served as head of a special team operating under the auspices of the delegation.