Germany may cancel Israel submarine deal

Germany has postponed the signing of a memorandum of understanding to sell Israel three submarines, Israeli newspaper Yedioth Ahronoth reported today.

The MoU was due to be signed next week between Germany officials and the Israeli ambassador in Berlin, however recent fraud investigations into Israeli officials with links to the submarine deal have led to the delay. Germany has not announced when the document would be signed.

Last week, six Israeli suspects, including close associates of Israeli Prime Minister Benjamin Netanyahu, have been detained on allegations of bribery, tax evasion, fraud offenses and money laundering in relation to potentially fraudulent purchase of naval vessels from Germany.

Read: ‘Deep differences’ between Israel and Germany

Germany may cancel the agreement altogether if investigations reveal underhanded dealing had taken place.