KNDS Investigates Legacy 2013 Qatar Arms Deal Amid Audit Delays and Allegations
KNDS Launches Internal Probe into Qatar Arms Deal and Faces Audit Challenges
By Kirsti Knolle and Christina Amann
BERLIN, April 29 (Reuters) - German-French tank maker KNDS has launched an investigation into a legacy transaction with the Qatar armed forces dating back to 2013, it said on Wednesday, adding it had yet to find any evidence of wrongdoing by employees past and present.
Background of the 2013 Qatar Arms Deal
The contracts in question, originally signed by KNDS predecessor Krauss-Maffei Wegmann, covered the procurement of 24 PzH 2000 artillery systems, 62 Leopard 2 tanks, further defence equipment and training and simulation equipment, KNDS said.
Current Status of the Investigation
"Based on the current findings of the ongoing investigation, which is well advanced but remains subject to completion, there is no evidence which would warrant the conclusion that any KNDS employees (past or present) involved in the transaction engaged in criminal misconduct," the company said in a statement.
Audit Delays and Market Listing Uncertainty
Germany's Der Spiegel magazine first reported the investigation earlier on Wednesday and said the tank maker faced uncertainty over its planned stock market listing after auditor PwC withheld approval of its 2025 annual accounts as a result of the enquiry.
However, KNDS said it expected the 2025 financial statements and their audit to be finalised in May.
Allegations of Commission Payments
Spiegel said the investigation centred on allegations of multi-million-euro commission payments tied to the 2013 arms deal with Qatar that it said was worth 1.89 billion euros ($2.21 billion).
The payments allegedly went to a consultancy controlled by a Qatari general, the report said, without including comments from Qatari authorities.
Legal Review and Responses
The law firm Freshfields has been tasked with reviewing the Qatar transactions, Der Spiegel reported.
Freshfields and Qatar's International Media Office did not immediately respond to Reuters' requests for comment. PwC said it could not answer questions about specific mandates or clients under German criminal law.
Ongoing Relations and Additional Information
KNDS, formed from Germany's Krauss-Maffei Wegmann and France's Nexter in 2015, continues to supply arms to Qatar, according to Der Spiegel.
($1 = 0.8545 euros)
(Reporting by Kirsti Knolle and Christina Amann, additional reporting by Andrew Mills; editing by Matthias Williams, Bernadette Baum and Barbara Lewis)
