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Degem was an Israel-owned computer business with operations in Israel, Guatemala, and Transkei (a Bantustan "homeland" controlled by South Africa). It was initially controlled by Israel's military intelligence and provided computer services to the South Africa and to Guatemala.1
Robert Maxwell took over Degem after its previous owner, Yaacov Meridor, faced a scandal. Maxwell acquired Degem with the intention of using it to market the PROMIS software, distancing himself personally from the spy project. Through Degem, Maxwell sold PROMIS to the East Bloc and other countries, including Brazil, Chile, Colombia, and Nicaragua. An abridged version of PROMIS, including the trap door, was also sold by Degem to Credit Suisse in 1985. Degem even sold PROMIS to the Soviet Union in the late 1980s, with Robert Gates lifting export barriers for IBM computers to the Soviets, which were then fitted with the trap-doored PROMIS by Degem technicians.1
In Guatemala, Degem, through Manfred Herrmann Sedra company, moved into offices, railway stations, and airports, and set up terminals at remote roadblocks, contributing to a system that tracked suspected dissidents. In Transkei, Degem was instrumental in implementing PROMIS as a "killing machine" against black revolutionary groups, including the African National Congress, by providing information that led to the disappearance or maiming of activists.1
Footnotes
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Ben-Menashe, Ari. Profits of War: Inside the Secret U.S.-Israeli Arms Network. TrineDay, 1992. (Hereafter, "Profits of War") ↩︎