-Caveat Lector-

http://www.haaretzdaily.com/hasen/pages/ShArt.jhtml?itemNo=268330
&contrassID=2&subContrassID=1&sbSubContrassID=0&listSrc=Y
w w w . h a a r e t z d a i l y . c o m


Defense Ministry says it is unaware of Israeli businessman arrested for arms
smuggling in U.S.



The Defense Ministry is to look into reports that an Israeli businessman has
been arrested in the United States on suspicion of attempting to import
military hardware into the U.S., with the intention of smuggling them out
again to China.

According to the reports, David Menashe, the 52-year-old managing
director of Kam-Tech Systems in Tel Aviv, was arrested on February 12 at
Los Angeles airport. He is being charged with attempting to smuggle
replacement parts for Sidewinder air-to-air missiles, ground-to-air Hawk
missiles and Phantom fighter jets.

Menashe has been charged with four counts of making false statements to
customs officials, including violating the U.S. customs laws and making false
import declarations, and could face up to five in jail if convicted. He is
being held along with four American citizens, two of them of Chinese
origin, all of whom are accused of conspiring to smuggle military hardware
to China. According to local media reports, Menashe has been released on
bail of $750,000.

Defense Ministry sources said yesterday that they were unaware of the
arrest, and that they had not been contacted by the American
authorities. Indeed, the sources had been unaware of the affair until
Haaretz asked for comments yesterday, despite the fact that the news
media in California and the Jerusalem Post had published details.

David Menashe's Kam-Tech Systems is one of the longest- established
companies in Israel that deals with military spare parts and IDF surplus. The
company is recognized by the Ministry of Defense, and only recently was
in negotiations to sell optic fiber to Israel Aircraft Industries.

Kam-Tech Systems was founded in 1979, and the official company Internet
site describes the company as "approved and qualified source to many
governments including the Israeli Air Force, U.S. government, and NATO."
According to the company its main field of expertise is aerospace
products, and deals in parts for jets such as the F-15, the F-16, Bell
helicopters and Hercules transporter planes.

Several years ago, Kam-Tech was the subject of a Military Police and the
Defense Ministry investigation. Kam-Tech, along with SRS and Tagar, were
suspected of operating a cartel to fix the price of IDF and Defense Ministry
surplus. The case is currently being examined by the Antitrust
Commissioner.
By Yossi Melman


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