ThyssenKrupp Under Fire Over Israeli Submarine Contract (excerpt)
(Source: Handelsblatt; published Nov 28, 2016)
By Martin Murphy and Pierre Heumann
The Israeli police are investigating allegations of corruption in relation to a contract for ThyssenKrupp to build a fleet of corvettes and submarines for the Israel Defense Forces or IDF.

The allegations couldn’t have surfaced at a worse possible time for ThyssenKrupp, or for Germany’s shipbuilding industry.

ThyssenKrupp’s shipyards in the north German port city of Kiel are fully set up to start work on the newest submarine for Israel’s navy. The vessel, to be named Dakar, is supposed to be delivered in two years. But it’s looking less and less likely that delivery will be on time. A squabble over costs has already delayed the Dakar.

But Handelsblatt sources said that it looks increasingly likely that the contracts for another three extra submarines that were due to be built after Dakar will also be canceled amid allegations of corruption. That would mean that the Dakar would be the last Israeli naval vessel to roll off a Kiel slipway for the foreseeable future. That could be the death blow to the shipyards, which recently missed out on a large contract to build submarines for Australia.

Dakar has been delayed because Israel wants to build in extra weapons systems, which can only be done by changing the dimensions of the submarine, and ThyssenKrupp and the Israeli military are at loggerheads over who should pay for the changes, sources told Handelsblatt. (end of excerpt)

Click here for the full story, on the Handelsblatt website (subscription)


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