ThyssenKrupp is likely to lose a contract to build additional three submarines for Israel amid allegations of corruption against the company.
The Israeli police are investigating allegations of corruption in the contract to build a fleet of corvettes and submarines for the Israeli Defense Forces (IDF).
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, Handelsblatt reported Monday.
“It looks increasingly likely that the contracts for another three extra submarines that were due to be built after Dakar will also be cancelled 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,” the news daily reported quoting unnamed sources as saying.
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.