European defence manufacturer KNDS has launched an independent investigation into a legacy transaction with the Qatar Armed Forces dating back to 2013, following the resurfacing of previously reported allegations, the company has confirmed.
The investigation, commissioned by KNDS’s Board of Directors, is being conducted by external legal counsel and advisory firms and includes an assessment of conclusions reached in previously conducted reviews. The contracts under scrutiny were originally signed by Krauss-Maffei Wegmann, one of KNDS’s national predecessor companies, and covered the procurement of 24 PzH 2000 self-propelled artillery systems and 62 Leopard 2 tanks as part of a deal reportedly valued at €1.89 billion, alongside further defence equipment, related services and training and simulation equipment.
The statement from KNDS reads as follows:
“As part of its ongoing commitment to the highest standards of governance, compliance and transparency, the Board of Directors of KNDS has commissioned an independent investigation into a legacy transaction with the Qatar Armed Forces, dating back to 2013.
In light of the recent resurfacing of previously reported allegations, KNDS launched the investigation which is being conducted by external legal counsel and advisory firms and also comprises an assessment of the conclusions of previously conducted reviews. Based on the current findings of the ongoing investigation, which is well advanced but remains subject to completion, there is no evidence which would warrant the conclusion that any KNDS employees (past or present) involved in the transaction engaged in criminal misconduct.
The contracts subject to this investigation, originally signed by Krauss-Maffei Wegmann, one of the KNDS national predecessor companies, covered the procurement of 24 PzH 2000 artillery systems, 62 Leopard 2 tanks, further defense equipment, related services as well as training and simulation equipment. The company will provide further updates as appropriate. KNDS currently anticipates the finalisation of its 2025 financial statements and their audit during the course of May 2026.”
German outlet Der Spiegel, which first reported the investigation, alleged that the inquiry centres on commission payments to a consultancy allegedly connected to a Qatari general. These are allegations that have not been proven and KNDS has not confirmed the specific details of Der Spiegel’s reporting. Qatar’s International Media Office did not respond to requests for comment at the time of initial reporting. Der Spiegel also reported that law firm Freshfields had been tasked with reviewing the transactions, though KNDS did not confirm the identity of the external legal counsel involved.
Based on current findings, KNDS said there was “no evidence which would warrant the conclusion that any KNDS employees (past or present) involved in the transaction engaged in criminal misconduct”, though the company noted the investigation remained subject to completion.
Der Spiegel also reported that auditor PwC had withheld approval of KNDS’s 2025 annual accounts pending the outcome of the inquiry, which it said created uncertainty around the company’s planned stock market listing. KNDS said it anticipated finalising its 2025 financial statements and their audit during May 2026 and did not address the IPO question directly.
KNDS was formed in 2015 from the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter and is one of Europe’s largest land systems manufacturers.
