The State Attorney’s Economic Department told the suspects that an indictment would be filed on allegations of committing security offences, weapons offences, Defence Export Control Law offences, Anti Money Laundering Law offences, and other offences.

The owner of the Solar Sky company, Ephraim Menashe, which makes cruise missiles, among other things, mediated a deal with Chinese entities bidding for a tender to supply cruise missiles to the Chinese military. He was the owner of Solar Sky and allegedly the mastermind behind the entire enterprise. He employed Tzvika and Ziv Naveh, the proprietors of the Innocon drone company, as well as other unnamed suspects.

Menashe is thought to have struck a deal with Chinese enterprises bidding for a contract. According to the prosecutor’s office, the accused allegedly smuggled missile components to China. They were also charged with threatening human life because the missiles were purportedly tested in Israeli neighbourhoods.

According to sources, China did not use the missiles. There are several hundred licenced arms exporters in the country, with several of them active in the defence supply chain.

The Defence Ministry’s Defence Export Controls Agency (DECA), established in 2006, manages the export and licensing of all Israeli-made defence equipment and technologies. Relevant companies must apply for a permit before brokering any overseas deals.