Israeli Court Freezes Up to 3 Million Shekels in Congo Arms Deal Dispute
Translated & summarized from Calcalist by baba
An Israeli court has frozen up to 3 million shekels in assets belonging to SYN-RG-Ai, a company brokering an arms deal with the Congolese president's guard. Arms manufacturer EMTAN Karmiel sued SYN-RG-Ai for over $1.5 million in unpaid supplies. SYN-RG-Ai denies the claim, stating they paid EMTAN $10 million and plan a counterclaim for defective products and inflated prices. The court issued the temporary freeze to secure potential judgment, impacting a deal that coincided with diplomatic moves between Israel and Congo.
The story in 5 lines · by baba
- An Israeli court froze up to 3 million shekels in assets related to a Congolese arms deal brokered by SYN-RG-Ai.
- EMTAN Karmiel claims SYN-RG-Ai owes over $1.5 million for assault rifles, pistols, and ammunition supplied in 2023.
- SYN-RG-Ai asserts it has paid EMTAN $10 million and will file a counterclaim for defective goods and price inflation.
- The court froze assets to prevent harm to the company's operations while the dispute is litigated.
- The arms deal is linked to diplomatic developments between Israel and the Republic of Congo.
A district court in Nazareth has frozen assets up to 3 million shekels belonging to arms dealers involved in a deal to arm the Congolese president's guard. The ruling stems from a lawsuit filed by Israeli arms manufacturer EMTAN Karmiel, which claims it was not fully paid for over $1.5 million worth of weapons and ammunition supplied in 2023. The deal, which included assault rifles, pistols, and ammunition, was brokered by the Israeli company SYN-RG-Ai.
EMTAN alleges that SYN-RG-Ai owes them the full payment for the supplies, which were delivered between June and November 2023. The manufacturer stated that they typically require full payment upfront but made an exception due to the perceived trustworthiness of SYN-RG-Ai's owners, described as high-ranking reserve officers. SYN-RG-Ai's co-owners are retired Major General Roni Numa and retired Lieutenant Colonel Avichai Stolero, each holding 47.5%, with CEO Avraham (Avi) Cohen holding 5%.
SYN-RG-Ai, which presents itself as a technology company, has countered EMTAN's claims. They assert that they have already paid EMTAN approximately $10 million, exceeding the amount owed, and plan to file a counterclaim. SYN-RG-Ai alleges that EMTAN inflated prices, supplied defective products, and provided non-standard ammunition. They also suggest EMTAN's lawsuit is a retaliatory measure after SYN-RG-Ai's owner, whose company won a major IDF tender, defeated EMTAN in a bid.
Judge Jamila Jabarin Khalifa ordered the freeze on SYN-RG-Ai's assets and rights, excluding current accounts and credit lines, to prevent significant harm to the company's ongoing operations while the legal proceedings continue. The dispute is linked to the transfer of the African nation's embassy to Jerusalem and the planned opening of an Israeli embassy in Kinshasa.