Submarine Affair: Communications adviser Tzahi Liber convicted of brokering bribes

The Tel Aviv District Court on Monday convicted communications adviser Yitzhak (Tzahi) Liber of acting as a bribe intermediary in the Submarine Affair, finding that he received nearly NIS 94,000 from businessman Miki Ganor, intended for Prime Minister Benjamin Netanyahu’s former chief of staff, David Sharan.

Judge Dr. Shmuel Melamed convicted Liber of brokering bribes, money laundering and assisting in the preparation of false accounting records. The court found that the payments were disguised as fees for consulting services that were never provided.

The verdict concerns one part of Case 3000, the corruption affair surrounding Israel’s purchases of submarines and naval vessels from German shipbuilder ThyssenKrupp. Ganor represented the company in Israel, while Sharan held senior positions in the Prime Minister’s Office.

The court tried Liber separately from the defendants in the main case, including Ganor and Sharan, whose proceedings remain ongoing.

The court examined two payments from Ganor’s company: NIS 35,400 transferred in November 2014 to a company owned by Liber, and NIS 58,500 transferred in August 2016 to a company owned by his business partner.

Judge: Companies, false invoices used to conceal Ganor-Sharan financial connection

Melamed found that the companies and false invoices were used to conceal the purpose of the payments and the financial connection between Ganor and Sharan. The arrangement also allowed the payments to be recorded as business expenses.

Liber, a close friend of Sharan, denied wrongdoing and maintained that the money paid for genuine communications and strategic consulting work. His defense argued that he had not passed Ganor’s money to Sharan and that a separate payment of several thousand shekels to his friend was a gesture of thanks for introducing him to Ganor.

The court rejected that account, relying on Liber’s admissions during police questioning, statements Ganor gave investigators, and supporting financial and other records.

In his police account, Liber described receiving the money and passing it to Sharan in cash. He also acknowledged conveying information and requests between Ganor and Sharan concerning submarines, according to the verdict.

Both Liber and Ganor later withdrew their incriminating accounts. Melamed nevertheless found that their earlier statements were supported by evidence including payment records, a table of consultants maintained by Ganor, staff notebooks and communications data.

Liber’s explanation of supposed consulting arrangement made no commercial sense, judge finds

The judge also found that Liber’s explanation of the supposed consulting arrangement made no commercial sense. Among other difficulties, the parties exchanged unsigned draft contracts, and Liber could not adequately explain how the amounts and timing of the payments had been determined.

A substantial part of the verdict addressed the defense’s attempt to exclude Liber’s police admissions. His lawyers argued that investigators from the Lahav 433 National Crime Unit had pressured him improperly, interfered with his access to legal advice, and linked cooperation to release from detention.

Melamed rejected the request, finding that Liber retained control over what he said, chose when to answer questions and when to remain silent, and gave his central admission after consulting privately with his lawyer. The judge concluded that the admissions were voluntary and reliable.

Although the prosecution sought separate convictions for each payment, Melamed treated the transactions as one continuing course of criminal conduct. Liber was therefore convicted of one count of each of the three offenses.

Melamed took over the case following the death of Judge Benny Sagi, who had heard the evidence. He explained that his verdict rested on the existing record, after both sides asked not to add to the material presented before Sagi.