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Israeli marines on a German-built submarine (archive image)
Photo: Ariel Shalit / AP
The Israeli government has decided to set up a commission of inquiry to investigate the so-called submarine affair.
A majority of ministers voted in favor of the proposal, a government spokesman confirmed.
The body is to review procedures for procuring German submarines and corvettes for the Israeli Navy in the years 2009-2016.
Court proceedings are already underway against several of those involved on suspicion of corruption.
An Israeli corruption fighter told SPIEGEL last year that all the evidence pointed to ThyssenKrupp as the source of the money.
Benjamin Netanyahu, head of government at the time, was also questioned about the affair, but was not considered a suspect.
However, he was accused of having enforced submarine deals against the will of the military and the Ministry of Defense.
In addition, it is now to be examined under what circumstances Israel agreed to the sale of German submarines to Egypt.
»Turn over every stone in search of truth«
Defense Secretary Benny Gantz and Foreign Secretary Jair Lapid were the main drivers behind the formation of the commission of inquiry.
"The submarine affair is the most serious case of defense corruption in Israeli history, and we must turn every stone in our search for the truth," Lapid said just over a week ago.
On Thursday, Israel and Germany finally agreed on a multi-billion dollar deal to buy three submarines of the new "Dakar" class.
The first of the boats, which are being developed in the Kiel shipyard Thyssenkrupp Marine Systems (TKMS), is to be delivered within nine years.
Prime Minister Naftali Bennett stressed that the new deal was agreed in a clean manner.
"Our only compass is Israel's security," said Bennett, who abstained from voting.
The plans had been on hold for years because of allegations of corruption.
According to the Israeli Ministry of Defense, the cost of the deal is around three billion euros, part of which is borne by the German government.
Israel already has six submarines from Kiel.
The three new submarines will gradually replace older models.
Deliveries to Israel are controversial because, according to experts, the boats can theoretically be equipped with nuclear weapons.
muk/dpa
