Six prisoners were punished with 14 days in solitary confinement and reduced living conditions.
Clashes in Jenin on Monday left at least five Palestinians dead and 28 injured.
Training border guards for both terror and smuggling security issues poses difficulties.
The cocaine was smuggled into Israel in 140 liters of bottles worth tens of millions of shekels.
The drugs had a street value of approximately five million NIS (approximately $1,392,963.30 USD.)
There are indications that the Egyptian police officer was quietly a radical jihadist who was using his position to stage a terror attack, meaning this was likely a fluke.
An officer in the IDF reserves told shocking stories about the situation on the Israeli-Egyptian border and the IDF's inability to control it.
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