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Germany delays Israel submarine deal over graft probe: source
 by Staff Writers
 Jerusalem (AFP) July 18, 2017


France indicts two ex-bosses in Malaysia submarine graft case
Paris (AFP) July 18, 2017 - French investigators have indicted two former top executives in a long-running probe into alleged kickbacks from the 2002 sale of submarines to Malaysia, sources close to the inquiry said Tuesday.

The two are Philippe Japiot, former chairman of the French naval dockyards unit DCNI, and Jean-Paul Perrier, former chief executive of the French defence and electronics giant Thales, they said.

The two, interviewed in May, have both been indicted for corruption, one of the sources said.

Japiot has additionally been indicted for "abuse of social assets" and Perrier for "complicity in the abuse of social assets," one of the sources said.

The investigation was launched in 2010 in response to a complaint by Malaysian rights group Suaram.

It centres on allegations that the French submarine maker paid commission of more than 114 million euros ($132 million) to a purported shell company linked to Abdul Razak Baginda, a former close associate of Prime Minister Najib Razak.

Najib was defence minister when the $1.1-billion deal for two Scorpene-class submarines was sealed.

From 2001 to 2007, Japiot headed the DCNI, the international branch of France's centuries-old naval shipbuilding operations, which changed its name last month from DCNS to Naval Group.

The French state holds just under two-thirds of Naval Group, and Thales slightly more than a third.

Two other people are under investigation in France in the same case: Dominique Castellan, also a former DCNI president, and Bernard Baiocco, former president of Thales International Asia.

All four deny any wrongdoing and the Malaysian government has said the contract was free of corruption.

The affair emerged spectacularly in 2006, when Abdul Razak's Mongolian mistress -- who was said to have demanded a payoff for working as a language translator in the deal -- was shot dead and her body blown up with plastic explosives near Kuala Lumpur.

A Malaysian court later cleared Abdul Razak of abetting the murder, sparking an outcry and opposition allegations of a cover-up.

Germany has delayed signing a deal with Israel advancing the sale of three submarines, an Israeli official said Tuesday as a corruption probe into the affair gained momentum.

Germany and Israel were set to sign a memorandum of understanding over the sale in Berlin next week, Israeli media reported.

A source in Israel's National Security Council said on condition of anonymity Tuesday that "Germany has put off the MOU signing for the time being," without providing further details.

That followed the arrest of several people in recent days on suspicion of offences including bribery and money laundering around the deal to buy the Dolphin submarines from German industrial giant ThyssenKrupp.

One of the main suspects is reportedly close to becoming a state witness.

Those detained include former navy commander Eliezer Marom, former deputy head of Israel's National Security Council Avriel Bar Yosef and the local representative for ThyssenKrupp, Miki Ganor.

David Shimron, a relative of Prime Minister Benjamin Netanyahu and his family lawyer who also represents ThyssenKrupp in Israel, was taken for questioning but later released.

On Monday, Israeli media reported that Ganor, who along with Bar Yosef is still in custody, was close to becoming a state witness.

Daily newspaper Yediot Aharonot, which first reported that the MOU signing had been delayed, said Germany had added a clause allowing it to back out of the deal if it was found to have been reached through corruption.

Israeli officials said Germany had not backed out of the deal but was waiting to see the outcome of the investigation, Yediot Aharonot reported.

German officials had no immediate comment.

In February, Israel's justice ministry said it had launched an investigation into the affair, stressing that Netanyahu himself was not a suspect in the case.

Netanyahu is being investigated separately, reportedly over allegations he and his wife accepted improper gifts from Israeli businessman and Hollywood producer Arnon Milchan.

The Israeli premier is also being investigated over suspicions he sought a secret deal with Amnon Moses, publisher of Israel's top-selling newspaper Yediot Aharonot.

Netanyahu has rejected allegations of misconduct, saying he is the target of a campaign by political opponents.

jjm/mjs/par

THYSSENKRUPP

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Leidos receives anti-submarine warfare system contract
 Washington (UPI) Jun 20, 2017
 Leidos Innovation has received a $27.4 million modification to an existing contract for logistics and installation of the Navy's AN/SQQ-89A(V)15 undersea warfare system, the Department of Defense announced on Tuesday. The contract modification will cover transport of materials, costs related to logistical support, waterfront operations, and installation of the AN/SQQ-89A(V)15 onto surfa ... read more
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