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Israeli Lawmaker Calls for Investigation of Iran Equipment Sales

Dec. 23 (Bloomberg) -- An Israeli lawmaker called for a parliamentary investigation into how Internet-monitoring equipment made by an Israeli company was shipped to Iran.

Nachman Shai, a member of the opposition Kadima Party, said he will ask the Foreign Affairs and Defense Committee this week to follow up on a Bloomberg News report that the NetEnforcer product made by Hod Hasharon, Israel-based Allot Communications Ltd. was sold through a Danish company to a buyer in Iran.

Allot shares fell 5.1 percent to $15.84 at 11:04 a.m. in New York, after earlier plunging as much as 13 percent.

A strict Israeli ban prohibits “trading with the enemy,” including any shipments to Iran. Israeli trade, customs and defense officials say their departments were unaware of the sales.

The Israeli Defense Ministry issued an e-mailed statement, saying it “has started to examine the report and will decide how to act according to the information and details that it collects.”

“It’s clear that the right hand doesn’t know what the left hand was doing,” Shai said in a telephone interview. “The Knesset must investigate how such important information slipped under the radar of the Defense Ministry.”

NetEnforcer conducts “deep-packet inspection” of networks. While the technology has commercial uses, such as managing network traffic, packet inspection also has been used by countries, including Tunisia, for snooping into e-mail contents of citizens, Bloomberg News found.

Allot officials said they authorized no sales to Iran and are looking into it.

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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