Israel Security Establishment Accuses Finance Minister of Scuttling Apache Helicopter Deal

A dispute has erupted between Israel's Defense and Finance Ministries over the cancellation of a deal to purchase Apache attack helicopters. The agreement collapsed after the deadline for signing passed without completion, leading to mutual accusations regarding responsibility for the failure and its impact on the Israeli military's readiness.

Senior officials in the security establishment, as reported by "Maariv," accused the Finance Ministry and its minister, Bezalel Smotrich, of obstructing the deal. They believe its cancellation could harm the IDF's operational capabilities, with one official stating the ministry "maneuvered" to kill the helicopter deal, thereby "harming Israel's security." According to the security establishment's account, the final deadline to sign the agreement was missed on Wednesday night-Thursday, with the Finance Minister preventing its finalization.

The canceled deal was part of a broader, decade-long arms procurement plan approved by Prime Minister Benjamin Netanyahu, valued at approximately 350 billion shekels. In April, the Ministerial Committee for Security Affairs had given its preliminary approval for several arms deals, including F-15 and F-35 fighter jets, half a squadron of Apache helicopters, and options for additional refueling aircraft and Black Hawk helicopters. The security establishment considered the acquisition of 12 Apache helicopters a top priority for the IDF, noting that Israel currently uses older models while regional neighbors like Egypt and Jordan possess newer versions.

The estimated cost of the helicopter deal was around $1 billion. The Defense Ministry had been working with the U.S. administration to advance the deal, while the Finance Ministry requested to postpone payment until 2030 due to existing financial commitments. The Defense Ministry stated that the U.S. agreed to three payment deferrals, including allowing approximately $700 million to be paid after 2030, provided the Defense Ministry secured funding for the remainder. The Defense Ministry also managed to postpone payments to Israeli suppliers beyond 2030 to free up resources for the helicopter purchase.

Security officials linked the deal's importance to the lessons learned from the October 7th attacks, asserting a "complete consensus" within the security establishment that the army needs more attack helicopters for large-scale infiltration operations. One official called the cancellation on the anniversary of October 7th "symbolic," suggesting the helicopters could have aided in saving civilians and soldiers during the attack. Security sources also expressed concern that the dispute might extend to other arms deals within the army's modernization plan.

The Finance Ministry, however, denied obstructing the deal. It stated that the Ministerial Committee for Armaments had approved the purchase as presented by the security establishment, and the ministry was prepared to fund it accordingly. The ministry claimed the security establishment later altered the agreed-upon plan, contrary to its commitment and the committee's decision, and in violation of budget restrictions. The Finance Ministry affirmed its commitment to funding security and armament deals annually with billions of shekels, in accordance with the law and political decisions.