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Rami Dotan arrives at a military court for sentencing.

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Dotan In Spotlight
Of Defense Contracts

Washignton (JTA) — The
case of Rami Dotan, the
Israeli air force general who
was convicted of taking mill-
ions of dollars in U.S. aid
money, is making headlines
again here.
This week, a congressional
subcommittee heard addi-
tional testimony about how
Mr. Dotan's relationships
with American defense con-
tractors through the mid-
and late 1980s resulted in
his diverting approximately
$40 million in U.S. military
aid originally earmarked for
Israel.
The General Accounting
Office, a congressional in-
vestigative body, said that it
found that U.S. aircraft
engine maker Pratt &
Whitney and officials from
Israel's Defense Ministry
were involved in diverting
U.S. foreign military assis-
tance funds from their in-
tended use for Israel's
military.
The role in the Dotan af-
fair of another American
company, General Electric,
was reviewed last year by
the same subcommittee, the
House subcommittee on

oversight and investiga-
tions.
Richard Stiener, director
of the GAO's Office of Spe-
cial Investigations, testified
that Pratt & Whitney and
Israeli defense represent-
atives "facilitated the diver-
sion of $12.5 million of U.S.
foreign military assistance
funds through an overpric-
ing scheme organized by"
Mr. Dotan and others.
"We believe that Pratt &
Whitney should have
known, or strongly
suspected, that government
of Israel officials and other
Israelis were diverting U.S.
funds," Mr. Stiener said.
Israeli officials said that
the issues raised in the hear-
ing were not new and that
Mr. Dotan's involvement
with Pratt & Whitney was
one of the issues on which he
had been tried and con-
victed.
The officials said that
since the Dotan affair, Israel
has been working to ensure
that it not be repeated.
Israel was also a victim of
the affair, and the Israeli
Defense Ministry was not
aware of what Mr. Dotan