NATO suspended Israel’s largest defence company amid a fast-growing corruption probe, sending shockwaves through the international defence market. The NATO Support and Procurement Agency (NSPA), which manages military equipment purchases for NATO and its 32 member nations, issued the suspension.
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This sudden move came after investigators uncovered signs of possible bribery linked to certain defence contracts. Earlier this year, police raided several countries, including Belgium and the United States, after they received concerns about companies making improper payments to win military supply deals.
Authorities suspect that companies offered bribes worth millions of euros to gain access to defence tenders. These tenders include essential equipment such as ammunition, protective systems for aircraft, and military technology used by NATO armies.
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Investigation documents show that NATO officially suspended the Israeli defence giant on 31 July, preventing it from bidding on new contracts. The agency also froze some existing contracts, delaying supplies for several NATO member states.
The agency additionally suspended a subsidiary company that supplies specialised explosive components. This has affected deliveries of equipment such as detonators, rocket system supplies, and parts used in aircraft defence systems.
Even with these disruptions, the main Israeli company is not currently the target of direct criminal charges. Instead, the corruption probe focuses on individuals and consultants linked to how procurement decisions may have been influenced behind the scenes.
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The corruption probe has revealed suspected wrongdoing inside the NSPA, with Belgium and Luxembourg leading much of the investigation. The agency has expanded rapidly since the war in Ukraine, now managing about 9.5 billion euros in contracts, which has raised concerns about oversight and internal controls.
The suspended Israeli defence company is one of the world’s largest suppliers of drones, ammunition, tanks, and surveillance systems. Its suspension has disrupted key NATO deliveries, including ammunition for howitzers and systems used to protect military aircraft, worrying member states that depend on these supplies.
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Investigators are also looking closely at consultants who may have acted as intermediaries between companies and procurement officials. Authorities have already arrested one former defence employee on suspicion of handling nearly 1.9 million euros in bribes.
They detained another former procurement staff member who was awaiting extradition to the United States, but U.S. authorities released him after they suddenly halted two investigations into NSPA-related corruption in July, providing no explanation.
Leaked documents have increased pressure by showing internal tensions within the NSPA, including claims that leadership favouritized certain individuals and ignored corruption warnings. NATO says the agency’s supervisory board must handle these concerns, though it has not issued any public comments so far.
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The suspension of Israel’s largest defence company has caused noticeable disruptions across NATO’s supply lines. Many member countries were expecting deliveries of ammunition, aircraft protection systems, and artillery components that are now delayed due to the corruption probe.
Some contracts not connected to the allegations are still being carried out, but several critical supplies remain on hold. Officials familiar with the situation say that they do not yet know when these contracts will resume, as the investigation remains active.
A spokesperson for the suspended Israeli company said that it operates under strict compliance rules and follows industry standards, but did not comment on the allegations directly. The NSPA, along with NATO leadership, also declined to issue detailed statements about the suspension.
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The corruption probe continues to grow, drawing the attention of governments, military officials, and anti-corruption agencies worldwide. With billions of euros in defence spending at stake, the investigation remains one of the most significant procurement scandals NATO has faced in recent years.
Although many details are still emerging, the suspension has already reshaped the defence supply landscape and placed increasing pressure on NATO’s procurement processes. As the corruption probe unfolds, multiple countries continue to gather evidence to understand the full scale of the alleged misconduct.
