State commission of inquiry into ‘submarine affair’ sends warning letters to Netanyahu and Ya'alon

A state commission of inquiry investigating the so-called submarine affair has issued warning notices to Prime Minister Benjamin Netanyahu and former Defense Minister Moshe Ya'alon.

Led by retired President of the Supreme Court of Israel Asher Grunis, the commission also issued warnings to former Mossad chief Yossi Cohen and former naval commander Admiral Ram Rothberg.

Letters indicate the commission's intention to severely criticize their actions. In the worst-case scenario, the commission may recommend initiating criminal investigations against them.

The letter stated, regarding Prime Minister Benjamin Netanyahu, that "Mr. Netanyahu's activities on relevant issues have led to serious and systematic violations of the procedures for the formation of the armed forces and decision-making on a series of classified matters."

Regarding former Defense Minister Ya'alon, it was stated: "In the statement submitted to the State Comptroller, he created a false picture that someone other than himself led to the acquisition of submarines that were more expensive and differed in their characteristics from those approved for acquisition by the government."

From Netanyahu's office came the following reaction: "Prime Minister Netanyahu asserts the submarines are a central pillar of Israel's national security and in ensuring its existence against Iran, which is trying to destroy us. Not only does the acquisition of the submarines not harm the security of the state – it ensures its existence. History will prove that Prime Minister Netanyahu was right on this issue as well and made the right decisions for the security of Israel."

The government decided to establish the commission in January 2022. Naftali Bennett, then Prime Minister, abstained from voting.

Initiated by Defense Minister Benny Gantz during the previous government's tenure, the commission continues investigating "Case 3000," also known as the "submarine affair."

The investigation revealed that the German shipbuilder Thyssenkrupp supplied Israel with five submarines adopted by the IDF. Until 2009, Reserve Brigadier General Yeshayahu Bareket represented the company in negotiations with Israel, after which he was suddenly replaced by businessman Miki Ganor. The investigation's findings indicate that then-commander of the Navy Eli Marom and Deputy Head of the National Security Council Avriel Bar-Yosef took active steps to appoint Ganor to this position, expecting to receive "compensation" from him later on.

During Ganor's tenure as the company's representative, deals worth hundreds of millions of euros for acquiring submarines and other ships were concluded, and negotiations were underway for acquiring additional vessels for an even larger sum. Throughout the investigation, there were constant suspicions that business people and officials received or demanded various illegal benefits directly or indirectly related to the acquisition of submarines and other ships or linked to transactions that were only under consideration and preparation with Ganor's involvement. This created an acute conflict of interest between their positions and the duty to protect the state's and their personal business interests.

An agreement was reached with Ganor, who was granted the status of a state witness in exchange for his testimony. On March 9, 2019, the police reported that Ganor wanted to change his testimony. As a result, he was deprived of the status of a state witness.

Benjamin Netanyahu was mentioned as a suspect neither during the police investigation nor in the State Comptroller's report. Former Defense Minister Moshe Ya'alon and some other individuals claimed that investigative authorities removed Netanyahu from the list of suspects for reasons unrelated to the case materials.