Defense Ministry failed to see holes in US-Israel military aid – report
Regarding safeguarding local Israeli defense producers, the report said that the Defense Ministry budget for purchases in recent years has been NIS 12 billion.
By YONAH JEREMY BOBWITH ONE gesture, Netanyahu, seen here with Donald Trump, could return the Palestinian cause to center-stage diplomatically while sabotaging new Arab alliances.(photo credit: BRENDAN MCDERMID/REUTERS)
Despite the immensely generous $38 billion in military aid the US is giving Israel between 2019-2028, the Defense Ministry failed to note holes in the deal which could harm long-term national defense, the State Comptroller report said Monday.The long-term defense aid package, signed in 2016, was considered one of the top achievements of an often otherwise rocky relationship between Prime Minister Benjamin Netanyahu and then-US president Barack Obama.According to comptroller Matanyahu Englman, “A significant reduction in the available shekel resources at the disposal of the security forces is anticipated, especially in 2025. The audit found that the Ministry of Defense did not analyze the possible implications of this decrease of independent manufacturing in Israel and on the IDF’s force design and possible degree of harm to the State’s security.”The Memorandum of Understanding (MOU) with the US provides $3.8 billion ($3.3b. in general plus $500 million for iron dome and other missile defenses) in American military aid to Israel annually between 2019-2028.This was a huge jump from the $1.8b. in military aid in 1998 and even from the $2.4b. in aid in 2008.According to the report, the MOU helps the IDF have the stability to make long-term strategic choices and has substantive positive impacts on relations between Jerusalem and Washington.However, Englman said that the massive nature of the aid may have led the Defense Ministry to obscure and put off key decisions about cuts and altering strategic weapon spending priorities.For example, he asks which areas should Israel make extra sure to maintain its own production ability regardless of overall budget cuts?No one has comprehensively checked what savings might be obtained by switching internal Israeli production of certain items to purchases overseas, added the comptroller.Part of the deal was a US requirement for Israel to buy certain defense items from the US.
According to the report, Defense Ministry estimates of its needs in February 2019 blow through the budget limits from the understandings reached with the Finance Ministry for cuts leading up to 2028.From 2016 to 2018, the IDF budget was set to drop from NIS 80 billion to NIS 75b., with additional significant cuts gradually worked in leading up to 2025 and 2028.Along with the criticism, the the comptroller did praise the Ministry for at least having its head economist take early steps to look at how the changing budget situation will impact its strategic concerns long-term.“The MOD, the Finance Ministry and the Economics Ministry and the defense Industry must formulate a program… to prepare for the repercussions of implementing the MOU,” said the report.When it comes to safeguarding local Israeli defense producers, the report said that the Defense Ministry budget for purchases in recent years has been NIS 12b.From 2013-2018, 38% of those purchases were from the big three Israeli defense companies – Israel Aerospace Industries, Rafael and Elbit, said the report.The Defense Ministry responded saying, “Upon the signing of the deal in 2016, the Defense Ministry started analyzing the impact of a reduction” in funds for local purchases on the local defense industry.“The comptroller praised the work of the task force of the Defense Ministry’s head economist, which was set up in partnership with the IDF, the defense industry and the Economics Ministry in January 2017,” said the Defense Ministry.Further, the Defense Ministry said that it has been implementing the task force’s recommendations starting in 2018 with impacts on multi-year purchase strategies, assistance to smaller and medium size defense industry partners and a focus on local purchases where possible, with a focus on the periphery.In addition, the Ministry said it had helped dozens of Israeli defense companies connect to larger US defense companies to increase their competitiveness.The report covers the period of July 2018 to September 2019.An entirely separate section of the report highlighted problems with the state’s archives being too slow to declassify documents even once they should have been made public by law.According to the comptroller, there are a staggering 300,000 documents in the national archives and 981,000 documents in the IDF archives which should have already been released.There are questions about whether some documents are being withheld to avoid embarrassment, but with no real national security justification.The report recognized that there is always a dilemma of balancing revealing information based on the public’s interest and right to know versus avoiding leaking material which should remain classified.However, the report said these documents are different because even after decades of being withheld, they are supposed to have been disclosed.The report slammed the chief archivist for extending classifications, which can only be done by the ministerial committee with authority over the issue.He urged the ministerial committee on the issue to meet with the Justice Ministry to figure out a way to streamline the process.On the flip side, the comptroller said that the Shin Bet (Israel Security Agency) must take action soon to get certain private archives under control.Many government ministries and agencies as well centers associated with former prime ministers and former employees maintain archives.Similarly, the report was alarmed by recent public servants’ tell-all books improperly revealing classified information.He praised the Justice Ministry for forming a new task force to prevent this and advocated continuing to develop measures for prevention and enforcement.Englman criticized the censor and the chief archivist for both performing a review to blackout portions of documents which are being declassified, noting this is redundant.He added that only one of the agencies needs to perform this task and requested the Attorney General’s Office give clarification about potentially leaving the issue solely to the archivist.The chief archivist responded that the agency works hard to publish information and tries even harder if a missed issue is brought to its attention. At the same time, the archivist said there is no shortcut if the state wants to avoid leaking information which remains sensitive.The report covers the period of July 2018 to September 2019.
