A crisis of internal credibility within NATO appears to be unfolding in the scandal that is rocking the National Support and Procurement Agency (NSPA), based in Kappeln, Luxembourg. NATO, through this particular organization that manages procurement, contracts and technical support for its member states, is now faced with revelations of corruption, bribery, favoritism and systematic money laundering.
The case came to light in May 2025, when an international media collaboration – including Follow the Money (Netherlands), Le Soir and Knack (Belgium), as well as La Lettre (France) – revealed an extensive circle of agency executives and associates involved in unfair practices. The journalists presented evidence that confidential information about NATO tenders was being illegally transferred to defense companies in exchange for financial rewards ranging from hundreds of thousands to millions of euros.
Former NSPA employees, now posing as “independent consultants,” acted as intermediaries between companies and active members of the organization. Under the pretext of their experience and the complexity of the technical standards – more than a thousand – they exploited the system for their own benefit, directing contracts to specific recipients.
The revelations led to a coordinated operation by Eurojust and other authorities on 12 and 13 May 2025, with raids in Luxembourg, Belgium, Spain, the Netherlands, Italy and the United States. The investigations have uncovered a large volume of documents, electronic data and financial transactions, which prove the existence of an organized network of corruption.
At the center of the case is Belgian Guy Moeraert, a former military officer and NSPA employee, who allegedly earned almost 1.9 million euros through shell companies. Scott Willason, the former head of the ammunition department, is also accused of dealing with a Turkish arms company, while Ismail Terlemez is alleged to have participated in behind-the-scenes collusion with suppliers and consultants, shaping tenders in favor of certain companies.
Despite the seriousness of the charges, the United States Department of Justice withdrew part of the prosecutions against former NSPA employees in July 2025, which raised reasonable suspicions of political interference. The Luxembourg Times and Follow the Money reported that this development was met with displeasure by European prosecutors, who continued investigations in Luxembourg and Belgium.
NATO’s administration, through its spokesperson, Allison Hart, stated that the Alliance “does not tolerate any form of corruption or fraud,” while Secretary General Mark Rutte and NSPA Director Stacy Cummings set up a joint working group to investigate the case. However, reports in La Lettre and other European media outlets accuse the NSPA administration of attempts to limit controls and silence whistleblower complaints, which gives the case even more worrying dimensions.
NSPA executives are alleged to have engaged in practices aimed at expelling Greek companies from the organization’s programs and contracts, transferring corresponding projects to foreign, mainly Northern European or Turkish, companies. These practices include deliberate delays in the evaluation of Greek files, alteration of technical specifications and use of pretextual justifications regarding “insufficient technical compliance”.
There are even indications that Turkish employees of the organization participate in evaluation committees and exert influence to the detriment of Greek interests, in cases related to fuel, logistical support and weapons system maintenance contracts. The picture that emerges is that the Greek defense industry is facing deliberate obstacles, within an international mechanism in which Greece participates as a full member and financier.
This situation raises wider concerns, as NSPA is responsible for managing procurement worth €9.5 billion and employs more than 1,600 staff. The credibility of the system is under serious question at a time when Europe faces increasing geopolitical challenges and dependence on common supply chains.
The scale of the problem goes beyond the administrative sphere. Transparency in defence procurement is now linked to the cohesion of the Alliance, the management of funds and the security of member states. If NATO cannot restore the functioning of NSPA, it risks facing a crisis of confidence similar to that caused by major defence procurement scandals in the past in Europe.
