Israeli defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT) has again reportedly disappointed the Swiss. After reports that Switzerland was mulling cancellation of a $380 million drone deal for six surveillance and reconnaissance unmanned aerial vehicles (UAVs) because they were dissatisfied with their capabilities, Swiss newspaper "Die WeltWoche" now claims that TK A telecommunications equipment procured from Elbit is 'unusable."
Elbit delivered radios for the TK A military telecommunications project, "worth estimated at 1.8 billion Swiss francs, in order to upgrade the Swiss army's communications system," the paper reported. The component, estimated at 300 million francs, "needs to be integrated into all IT systems," but "it is unclear whether the product will be ready for operational use."
The Swiss newspaper wrote that "at the beginning of the year, the head of the cybersecurity department and project supervisor, Simon Miller, warned that 'the company has difficulty ensuring the quality of its products and delivering on time.'" He said, for example, that some of the components were supplied with the wrong cable length.
"It is still difficult to estimate how much the possible failure will cost the taxpayer, but public funds worth more than half a billion francs are at stake - once again," it said.
Published by Globes, Israel business news - en.globes.co.il - on July 20, 2025.
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