AVA- The Merkel administration announced in October that it had suspended arms sales to Saudi Arabia until the Khashoggi case was "cleared up", and put the agreed deliveries on hold weeks later.
But an investigation by the Stern magazine together with the ARD broadcaster has revealed that the German arms company Rheinmetall has been selling weapons to Riyadh through its subsidiaries in Italy and South Africa despite the complete halt in exports ordered by the German chancellor after the murder of dissident Saudi journalist in Istanbul.
Rheinmetall, a corporation based in the western German city of Dusseldorf, has a subsidiary called RWM Italia, which builds bombs on the Italian island of Sardinia, a report by Deutsche Welle (DW) said.
Investigations have proved that in October 2016 a family of six, including a pregnant woman, was killed by a bomb produced by RWM Italia. There was, according to eyewitnesses, no military reason for the airstrike that was launched at three in the morning when the family was asleep in their house. DW has obtained a copy of the case report which calls the airstrike "a crime."
It is likely, activists told DW, that while prosecutors decide whether to investigate, RWM would continue exporting to Saudi Arabia. Indeed, DW has learnt, the bomb factory is planning to expand and has asked the local authorities for planning permission.
The German company has also sought a broad partnership with the struggling South African arms maker Denel, which would include acquisition of the company's minority stake in a joint venture Denel holds with German Rheinmetall: Rheinmetall Denel Munition (RDM).
RDM specializes in medium and large-caliber ammunition including artillery shells, and is reportedly fanning the flames of the Yemen war by selling weapons to the Saudi regime.
Rheinmetall board member Helmut Merch reportedly admitted in a conference call with bankers in mid-November that these two export channels were “not affected” by the ban.
However, in a meeting with investors earlier this year, the CEO of Rheinmetall, Armin Papperger, reportedly stressed that his company was not responsible for any business conducted by its subsidiaries.
This comes as Merkel’s government boasted about its decision to halt arms exports to Saudi Arabia in October, citing human rights concerns, and calling on all European countries to follow suit.