Israeli Court Freezes Assets of Arms Brokers in Congo Deal Dispute

A legal dispute involving a major arms deal for the presidential guard of the Democratic Republic of the Congo has surfaced in Israel. The Nazareth District Court has issued asset freezes of up to 3 million shekels against the arms brokers who facilitated the transaction through the Israeli company Syn-RG-Ai. Although presenting itself online as an information technology and communications solutions firm, Syn-RG-Ai was involved in the military procurement deal. The freeze orders follow a lawsuit filed by weapons manufacturer Emtan Karmiel, which alleges it has not received full payment from Syn-RG-Ai for the delivery of assault rifles, handguns, and ammunition valued at over $1.5 million. The shipments were supplied in 2023 to the presidential guard of Congolese President Felix Tshisekedi.

The controllers of Syn-RG-Ai, the mediating firm in the arms deal, include Maj. Gen. (res.) Roni Noma, former head of the IDF Central Command, who holds a 47.5% stake, and Lt. Col. (res.) Avihai Stolero, a businessman and owner of the logistics and freight company ICL, who also holds 47.5%. Col. (res.) Avraham (Avi) Cohen, who previously served in senior positions in the IDF C4I and Cyber Defense Directorate and serves as CEO of the company, holds the remaining 5%. "I am satisfied at this stage that failing to grant a temporary attachment order against the defendants could substantially hinder the execution of the judgment when issued," wrote Judge Jamila Jabarin Khalifa, emphasizing that the freeze would apply to Syn-RG-Ai assets and rights, excluding current accounts or credit lines from banks to avoid disrupting the company's ongoing operations.

The Emtan Lawsuit and the Congo Deal

According to court documents, the relationship between Emtan and Syn-RG-Ai regarding the Congolese project began in 2022. "Negotiations took place between the parties, during which it was agreed that Syn-RG-Ai would purchase weapons manufactured by Emtan as well as various ammunition items produced by IMI Systems," Emtan claims in its 4.5 million shekel lawsuit filed through attorneys Gabriel Disney and Hila Nissan. The Karmiel-based weapons manufacturer adds that despite the scale of the project, and the fact that it typically requires full prepayment before delivery, it was under the impression that the intermediaries were "high-ranking reserve officers who appeared to be wealthy, trustworthy individuals of substantial means, assets, and influence."

According to Emtan, the defense and ammunition industry operates on personal trust, where large-scale transactions are conducted based on verbal agreements backed by the personal word of the other party. "Timely and full payment is considered 'holy of holies,' which parties uphold with religious fervor without ever imagining violating such a promise," the lawsuit states. The various shipments, court documents show, were sent to the Congo between June and November 2023. They included hundreds of MZ-4 and MZ-15 assault rifles, MZ-10 machine guns, Ramon pistols, laser designators, telescopic sights, night vision systems, and millions of rounds of 5.56mm, 7.62mm, and 9mm ammunition. Invoice documents specified the destination as "Presidency of the Republic of Congo – Palace of the Nation, Kinshasa," and noted that the items required export licenses and approval from the Defense Export Control Agency (DECA) of the Ministry of Defense.

Failed Payments and Proposed Return of Ammunition

Email correspondence indicates that despite the delivery of the weapons shipments, the Congolese government failed to pay the full amount, prompting Syn-RG-Ai to request returning a portion of the shipments to Emtan to offset its debt. On December 9, 2024, under the subject line "Returning ammunition to Israel as part of the Congo project," Syn-RG-Ai CEO Avi Cohen wrote to Emtan CEO Dror Zada: "I request your assistance in returning ammunition to Israel and crediting us due to non-payment by the Congolese government for the project. This involves 5.56 and 9mm ammunition stored at the Kibumango base of the Presidential Guard in the Congo."

Cohen added in the email that ICL and Avihai Stolero would handle all logistics in the Congo and Israel, including packaging, transport on the Congolese side, chartering a flight estimated at around $800,000, and obtaining Israeli permits. Cohen requested that the returned ammunition be credited against Syn-RG-Ai's debt to Emtan, which at the time stood at over $1 million, following an initial payment of approximately $490,000 made by Syn-RG-Ai.

Syn-RG-Ai Defense and Counterclaims

In response to the lawsuit, Syn-RG-Ai stated: "Emtan is concealing the fact that Syn-RG-Ai has paid the plaintiff approximately 10 million dollars to date, well above what is owed given the plaintiff's conduct. Syn-RG-Ai has strong counterarguments and intends to file a countersuit regarding inflated prices, the supply of defective products, substandard ammunition, and other breaches of contract. The personal lawsuit against shareholders and directors has no legal basis and is nothing more than an unprincipled attempt to threaten and damage their good names in order to exert pressure."

"It appears that these claims are an abuse of legal proceedings within a commercial dispute, driven by an attempt to harm one of Syn-RG-Ai's shareholders after a company he owns outperformed Emtan in a major IDF tender for the supply of high-quality assault rifles to IDF soldiers, worth tens of millions of shekels. Emtan's court petition to overturn the tender results and declare it the winner was rejected, and it apparently refuses to accept defeat," the company added.