Among the 13 people arrested yesterday for suspected offenses, which include fraud and bribery relating to the business operations of Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1), is retired Brigadier General Amal Asad, a member of the company's board of directors. The others arrested include senior executives and office holders, workers committee members, managers, and junior employees, as well as consultants, suppliers, and IAI service providers.
The arrests followed a covert operation lasting several months by the Israel Police Lahav 433 national investigation unit together with the Ministry of Defense director of security of the defense establishment and Israel Tax Authority Tel Aviv office investigators. Others were detained for questioning as part of the investigation.
According to the police the investigation is extensive and far-reaching and involves complex sub-investigations encompassing allegations of encompassing a large range of offenses including bribery, aggravated fraud, money laundering, theft by a public employee, and breach of trust.
The main suspicion is that IAI employees received bribes and favors from private companies providing services to the government owned defense manufacturer (their suppliers) in exchange for promoting the interests of these companies. This included helping suppliers to win IAI tenders. The suppliers themselves are suspected of giving bribes and favors and other offenses.
Israel Police said that the undercover probe has so far found systematic criminal behavior and suspicions of deep-rooted corrupt practices at Israel Aerospace Industries.
The affair, which has been called case 630, includes many and a diverse range of employees at various levels of the State-owned defense company
The suspects will be brought to the Rishon Lezion Magistrates Court to have their remands extended.
IAI said, "IAI became aware of an Israel Police investigation regarding the company. IAI's management has no further details regarding this issue. IAI's CEO has directed all relevant parties to cooperate fully, as and where necessary, with the Israel Police, to act in accordance with its regulations, and help to bring the current investigation to a successful conclusion and charge all those who may have committed an offence. Israel Aerospace Industries continues to play a central role in both the security and economy of the State of Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2017
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