NATO agency bars Elbit Systems from contracts amid corruption probe

NATO's Support and Procurement Agency (NSPA) has imposed a major sanction on Israeli defense contractor Elbit Systems, suspending existing contracts and barring it from new tenders. The decision, finalized on July 31, stems from an extensive corruption investigation involving alleged bribery within the agency's procurement division.

Suspensions and an international manhunt

The NSPA's action freezes critical Elbit contracts covering ammunition, artillery systems, and aerial defense equipment. According to reports, agreements with its subsidiary Orion Advanced Systems were also suspended. Concurrently, an international arrest warrant has been issued for Eliau Eluasvili, an Italian citizen suspected of acting as a consultant for Elbit and linked to the bribery scheme. Belgian authorities confirm he is wanted on charges of bribery and criminal association.

A probe into systemic corruption

The investigation, which has shaken NATO's logistics arm, alleges a bribery chain was established to secure lucrative NATO supply contracts. Simultaneous raids across seven countries, including Belgium and the US, led to the detention of several former and current NSPA officials. Prosecutors believe defense companies may have distributed millions of euros in bribes, with one central figure, former Belgian defense official Guy M., allegedly facilitating a bribery network worth 1.9 million euros.

Implications for NATO procurement

This scandal represents one of the most significant corruption cases within NATO's procurement structure in recent years. While some Elbit projects deemed unrelated to the allegations continue, the company's standing within the alliance has been severely compromised. The investigation is expected to widen, potentially implicating more companies and officials, as NATO works to safeguard the integrity of its defense supply mechanisms.