- What guarantees were given when ELVO was sold to Sammy Katsav of Israel, who had been under house arrest with an electronic bracelet?
- Is ELVO at risk of being left out of the Rearm Europe funding?
- Many believe that the goal is not to operate ELVO as a defense industry but rather to turn it into a real estate venture.
By Paris Karvounopoulos
The sale of ELVO to the SK Group sparked a storm of political reactions amid the August lull. ELVO, once—and potentially again—the country’s leading manufacturer of specialized military and civilian vehicles, has now passed into the hands of Israeli businessman Sammy Katsav. Criticism of the government centered on handing over such a vital defense industry to foreign control.
However, as Data Journalists revealed, this is not the only problem. A series of questions about the new ownership casts serious doubt on ELVO’s future as a defense company.
Although the SK Group assures that it will leverage its expertise in the defense sector, proven success in restructuring privatized factories, and commitment to technology transfer to establish ELVO as a production and export hub, there are concerns about whether the company will return to full-scale production. This directly affects Greece and its armed forces. Many observers believe that the ultimate goal is not to operate ELVO as a defense industry but rather to exploit its facilities—or even the land on which they stand. In other words, there is growing suspicion that ELVO may ultimately become a “real estate venture.”
The paradoxes and the story behind the sale
ELVO “crossed paths” with Sammy Katsav in 2019 when the Mitsotakis government put the company up for sale. Together with another company, Katsav took over the “good” part of ELVO after the firm was split into two entities: a “good” and a “bad.”
Katsav had faced significant legal troubles in Israel. Since 2018, he had been under judicial investigation and under house arrest with an electronic monitoring bracelet for a period. The case involved illicit payments made by Gold Bond, a company under his control, to government officials in an African country. In March 2020, Israel’s attorney general announced the closure of the high-profile bribery case. The investigation, which began in 2018, centered on allegations that Gold Bond had made illegal payments to officials in an African government. Ultimately, the case was dropped without any formal charges being brought against Katsav.
In early 2021, they acquired a 47.6% stake for only €3 million. ELVO 2020 was established, but it never became a viable industry. Instead, management moved to liquidate nearly all of its assets. According to reports, the liquidation process took place at prices significantly below the acquisition cost. This raises serious questions about the transparency and legality of the transactions. The company was effectively devalued, and 95% of its facilities, covering a total area of 66,000 square meters, were left idle from 2019 to 2025.
The 2019 tender process raises reasonable suspicions of illegality and financial impropriety that warrant further investigation and potentially prosecutorial intervention. Before proceeding with the tender, the Greek government should have thoroughly examined the Katsav family’s ties with third countries, such as Turkey, as well as the fact that the eventual owner of ELVO 2020 had been under house arrest in Israel with electronic monitoring.
It is also important to determine if the Katsav family submitted a business plan in 2019 and if there are still concrete commitments today regarding capital increases and substantial partnerships that would strengthen the domestic defense industry in terms of programs and jobs. Notably, ELVO 2020 currently employs only ten people.
From 2019 to 2025, beyond the liquidation of movable assets and the devaluation of real estate, serious difficulties arose in implementing the required capital increases. These procedures were deemed absolutely necessary under existing legislation because the company’s equity fell annually to less than 50% of its own capital base, highlighting the need for immediate corrective measures. Against this backdrop, it was announced in mid-August that ELVO would fully pass under the control of SK Group and Sammy Katsav.
The first major issue that arises—not only for ELVO, but also for the country’s defense capabilities, which depend on the domestic defense industry—is whether ELVO retains the right to participate in the Rearm Europe program under its new ownership by a non-EU country. According to the available information, the company does not meet the inclusion criteria under the development law and cannot use the Recovery Fund.
According to Data Journalists, who obtained documents from a minority shareholder of ELVO and submitted them to the courts, serious questions arise regarding the management and decisions of the Katsav family. These documents could prompt an investigation into the actions that led to the company’s devaluation.
At the same time, available evidence suggests that active business partnerships were either canceled or never materialized, despite initially favorable conditions. The Katsav ownership refused to meet with major European and American defense companies with which cooperation was possible. Interestingly, even during the war in Ukraine, when defense opportunities multiplied, Sammy Katsav’s business activities in Israel grew stronger while ELVO 2020 derived no substantial benefit.
The policy of opacity and lack of cooperation continued during the negotiations for the sale of ELVO in 2020 to Alpha Systems. In July 2024, the Israeli shareholders of ELVO agreed to sell for €7.3 million following the Minister of National Economy’s consent.
However, the Katsav administration failed to provide the necessary documentation, which caused significant delays in the due diligence process and created obstacles for potential investors. For instance, although Katsav’s management took around eight months to complete the company’s transfer, they demanded that the new investors finalize the acquisition within two weeks. While the completion of the ELVO 2020 transfer was expected in mid-August, announcements suddenly followed stating that the company would instead pass entirely into Katsav’s hands.
The Haaretz report
