Jerusalem, 2 February, 2026 (TPS-IL) — Israel’s State Comptroller published a report on the Ministry of Defense’s supervision and control of the use of marketing promotions in defense export transactions. The report found problems with these promotions.

The report examined, among other things, the existing policy in the Ministry of Defense on this issue, its actual implementation, and the interface between the ministry and the defense companies, against the background of the State of Israel’s obligations under Israeli Law and its international obligations, including the OECD Convention on Combating Bribery of Foreign Public Officials.
According to the audit findings, the use of marketing intermediaries in defense export transactions involves Compliance and corruption risks, among other things, given the scope of the activity, the characteristics of the relevant markets, and the scope of the commissions paid. In addition, the report pointed to gaps in the Ministry of Defense’s supervision and control, including the lack of up-to-date and clear regulation of the rules for supervising marketing intermediaries, the lack of determination of mandatory compliance measures for medium and small defense companies, the lack of regular control over compliance programs to prevent corruption, and the failure to establish a complete database regarding marketing intermediaries operating in defense export transactions.

The report also noted that issues related to possible conflicts of interest, the involvement of boards of directors in approving engagements with marketing promoters and the commissions paid to them, as well as the conduct of Ministry of Defense employees in their interactions with marketing promoters, were not adequately regulated.

Gil Tanenbaum

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