NATO blocks Elbit over corruption allegations
Israel’s biggest defence company, Elbit Systems, has been suspended by NATO’s procurement agency as part of a widening corruption investigation. The NATO Support and Procurement Agency (NSPA) placed the company on hold on 31 July, blocking it from bidding on new tenders and freezing several ongoing contracts.
The suspension follows a major graft probe into the NSPA, where current and former staff are suspected of accepting bribes worth potentially millions of euros in exchange for helping companies secure defence contracts. Police raids across seven countries in May led to several arrests, including in Belgium and the United States, News.Az reports, citing foreign media.
Documents obtained by Follow the Money and partner media outlets confirm that Elbit — a major supplier to NATO for over a decade — is among the companies affected. Contracts involving ammunition for howitzers, rocket artillery systems, and aircraft defence equipment have been put on hold. Supplies of explosive detonators from Elbit-owned Orion Advanced Systems have also been frozen. Contracts not linked to the alleged corruption continue to be carried out.
In addition to the corporate suspensions, an Italian consultant linked to Elbit, identified as Eliau E., is wanted under an international arrest warrant issued by Belgium on 30 September. He is accused of bribery and participating in a criminal organisation and is believed to be travelling under a false identity. While there is no publicly available evidence directly connecting him to Elbit, people familiar with the case say he has worked closely with the company. Elbit itself is not currently under investigation.
The corruption probes are ongoing in Belgium and Luxembourg, where the NSPA is headquartered. Two related U.S. investigations were abruptly closed in July without explanation, raising concerns about possible political interference.
The NSPA has grown significantly since Russia’s full-scale invasion of Ukraine in 2022. Its total contract spending is expected to reach 9.5 billion euros this year, nearly three times the 2021 figure.
Elbit Systems, headquartered in Haifa, is Israel’s largest defence manufacturer, with revenues approaching 7 billion dollars in 2024. Ranked 25th among the world’s top 100 defence companies by SIPRI, it has supplied NATO with drones, ammunition, night-vision devices, and anti-missile systems. The full value of its contracts with the alliance is unknown due to the secrecy surrounding many defence deals.
In response to questions, an Elbit spokesperson said the company could not comment on the allegations but emphasised that it maintains a comprehensive compliance programme aligned with industry standards.
Investigators say consultants are central to the corruption scheme. Eliau E. reportedly worked closely with key suspect Guy M., a former Belgian defence official and ex-NSPA employee who was arrested in May and spent about six months in detention before being released with an ankle monitor. Belgian authorities believe he handled around 1.9 million euros in bribes, though his lawyer disputes the amount.
Recent leaked documents have revealed internal turmoil within the NSPA, including accusations of favouritism and failures to address corruption by agency head Stacy Cummings. NATO and the NSPA did not respond to requests for comment for this report.
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