Defense firms revamp rules for OECD
State-owned defense companies Israel Aerospace Industries, Rafael and Israel Military Industries are revamping their contracts with overseas partners to meet the requirements of the OECD's Anti-Bribery Convention, defense sources say. The contract amendments are said to be sweeping and highly confidential.
According to the sources, existing contracts do not meet the criteria set by the OECD convention, which Israel joined in May and which aims to combat bribery of foreign public officials in international business transactions. For instance, according to the convention, a contract that provides for a 15% fee on a deal is not legal, and the same goes for a contract article that releases a company from responsibility if bribery accusations are raised.
All state-owned companies, of course, not just defense firms, are required to examine their contracts with overseas partners in light of the instructions.