German-French tank manufacturer KNDS has initiated an investigation into a legacy transaction with the Qatar armed forces, dating back to 2013. The company, which produces a range of defence equipment including tanks and artillery systems, stated on Wednesday that it has yet to find any evidence of wrongdoing by past or present employees. This probe follows reports from Germany’s Der Spiegel magazine concerning allegations tied to the deal.
The contracts under scrutiny, originally signed by KNDS predecessor Krauss-Maffei Wegmann, encompassed the procurement of 24 PzH 2000 artillery systems, 62 Leopard 2 tanks, additional defence equipment, and training and simulation tools. Der Spiegel alleged the investigation centres on multi-million-euro commission payments associated with the 1.89 billion euro ($2.21 billion) arms deal, purportedly made to a consultancy controlled by a Qatari general. The law firm Freshfields has been tasked with reviewing these Qatar transactions.
Der Spiegel also reported that auditor PwC had withheld approval of KNDS’s 2025 annual accounts, creating uncertainty around its planned stock market listing due to the enquiry. However, KNDS countered this, stating it expects the 2025 financial statements and their audit to be finalised in May. The company reiterated its position, asserting that, based on current findings, “there is no evidence which would warrant the conclusion that any KNDS employees (past or present) involved in the transaction engaged in criminal misconduct.” KNDS, formed from Krauss-Maffei Wegmann and Nexter in 2015, reportedly continues to supply arms to Qatar.
