6 companies embroiled in IDF gadgets scandal

Arrest of NCO suspected of abusing acquisitions privileges unravels elaborate scheme involving six of Israel's leading electronic companies

Avital Lahav, Yoav Zitun|Published: 02.07.13 , 14:10

The Military Police's arrest of a non-commissioned-officer who allegedly swindled millions of shekels out of the IDF via bogus electronics acquisitions has lead the IDF to suspend its contracts with six of Israel's leading communications and electronic companies.

The case was first reported by Ynet: It is believed that an NCO with the GOC Northern Command abused his authority – which allowed him to issue acquisition orders – to purchase various electronics and gadgets, including smartphones, laptops and tablet PCs for his family and friends.

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The Defense Ministry suspended its contracts with the six companies linked to the case, pending the investigation's conclusion.

The companies are: Dor Information Technologies, Videoset Technolgoies, Nextcom, Rotal Networks, Shamrad Electronics and Menolead Herut Systems.

Investigators have already established that the NCO's contacts in the companies knew of his actions and failed to report it.

All six comapnies are also under investigation for allegedly allowing the NCO to establish false lines of credit worth millions of shekels of the IDF's money.

The officer has reportedly implicated the companies in his interrogation.

Military Police investigators have been able to locate and seize all of the equipment.

The Defense Ministry's probe of the companies revealed that they filed false invoices for goods and services that were never provided. The investigation is trying to determine how much of the affair was known to the companies' respective managements.

The Defense Ministry's Tenders' Committee has ordered to suspend all six contracts, immediately and in full. All six have also been barred from participating in future bids until further notice.