This forensic audit report establishes a comprehensive economic map of the corporate entities formerly unified under the Hewlett-Packard Company—specifically the post-2015 bifurcated entities of HP Inc. (NYSE: HPQ) and Hewlett Packard Enterprise (HPE)—within the jurisdiction of the State of Israel and the Occupied Palestinian Territories (OPT). The primary objective of this engagement is to determine the extent of “Economic Complicity” in mechanisms of state control, military occupation, surveillance infrastructure, and the carceral management of the Palestinian population.
The audit utilizes a forensic accounting methodology that triangulates government procurement data, tender awards, corporate registry filings, supply chain trade logs, and third-party integrator disclosures. The analysis distinguishes between direct complicity, characterized by primary contractual engagement with state security agencies (e.g., the Ministry of Defense, Israel Prison Service), and structural complicity, defined by the deep integration of proprietary technologies into the critical infrastructure of the occupation, often facilitated through a network of authorized intermediaries and local integrators.
The scope of this investigation encompasses the fiscal years leading up to and including 2023–2026, capturing the most recent contract renewals and supply chain activities. It rigorously examines the operational legacy of the “HP” brand, which, despite corporate restructuring, continues to function as a singular support mechanism for the Israeli state apparatus. The audit reveals that while the legal entities have separated, the operational liability regarding human rights violations remains intertwined through shared legacy infrastructure, common local integrators, and a synchronized strategic commitment to the Israeli market.1
A foundational finding of this audit is the necessity to analyze the November 1, 2015, corporate split not merely as a business restructuring for shareholder value, but as a divergence of operational liability that complicates accountability mechanisms.
Hewlett Packard Enterprise (HPE): Retaining the enterprise technology infrastructure, software, and services businesses, HPE inherited the legacy contracts that form the “nervous system” of the occupation. This includes the server farms for the Ministry of Defense (IMOD), the “Aviv” population registry system for the Population and Immigration Authority (PIBA), and the maintenance of the “Basel” biometric checkpoint architecture. HPE functions as the architect of control, providing the backend stability required for the state’s bureaucratic and military management of the Palestinian population.2
HP Inc.: Retaining the personal systems (PC) and printing businesses, HP Inc. functions as the industrial anchor and endpoint provider. It supplies the workstations used by military personnel and the biometric ID card production technology. Furthermore, through its ownership of the HP Indigo Division, HP Inc. is deeply embedded in the Israeli industrial economy, operating massive manufacturing facilities in Kiryat Gat and serving as a top-tier exporter. This entity provides the economic legitimacy and tax revenue that sustains the state’s broader operations.5
The forensic analysis suggests that the “HP” brand liability is functionally shared. HPE maintains the backbone (servers, data storage, virtualization), while HP Inc. provides the endpoints and the industrial revenue. Both entities utilize the same network of local integrators—specifically Matrix IT and Malam Team—to obfuscate direct involvement in sensitive sectors such as settlement municipal management and military logistics. This intermediary layer acts as a “compliance buffer,” allowing the US parent companies to report adhering to global human rights standards while their technology actively powers entities designated as illegal under international law.8
The audit establishes four primary pillars of economic complicity that persist into the 2024–2026 period:
To accurately attribute economic complicity, it is essential to map the corporate entities operating within the jurisdiction. The obfuscation of responsibility often lies in the complex web of subsidiaries and the strategic use of local partners.
HPE operates in Israel primarily through Hewlett Packard (Israel) Ltd. This fully owned subsidiary is the contracting party for government tenders and is the entity legally bound to the Ministry of Defense and other state agencies. Following the 2015 split, HPE retained the high-value government service contracts.
In 2017, HPE spun off its Enterprise Services business to merge with Computer Sciences Corporation (CSC), forming DXC Technology. Forensic tracking of contracts indicates that while some operational aspects of the “Basel” checkpoint system moved to DXC, HPE retained the hardware supply chain and server maintenance contracts that underpin these systems. DXC manages the software and integration, but the physical infrastructure often remains HPE-branded, creating a continuing revenue stream for HPE via hardware refresh cycles and support agreements.2
HPE has further entrenched its Israeli footprint through strategic acquisitions. Most notably, in 2023, HPE acquired Axis Security, a Tel Aviv-based cloud security provider, for an estimated hundreds of millions of dollars. Axis Security was integrated into HPE’s edge-to-cloud security capabilities (GreenLake). This acquisition signifies a shift from merely supplying hardware to integrating Israeli-developed cyber-defense intellectual property (IP) into HPE’s global portfolio. This deepens the bidirectional dependency: HPE relies on Israeli military-grade tech innovation, and the Israeli tech sector relies on HPE for capital and market access.15
HP Inc. operates through HP Israel, headquartered in Ra’anana. Its most significant asset is the HP Indigo Division, headquartered in Ness Ziona with massive manufacturing facilities in Kiryat Gat. HP Indigo is a dominant player in the global digital printing market.
Additionally, HP Inc. previously acquired Scitex Vision, integrating it into its industrial print division. Recent restructuring efforts between 2023 and 2025 have seen the Scitex operations merged into the Indigo division, accompanied by workforce reductions of approximately 100 employees per cycle. Despite these layoffs, the manufacturing capacity in Kiryat Gat remains a critical export engine for Israel. The facility produces the proprietary “ElectroInk” and the digital presses themselves, representing a capital investment in the billions of shekels.5
A forensic review of government tenders reveals a reliance on “Platinum” and “Gold” partners to execute contracts in sensitive areas. This structure creates a layer of plausible deniability for the US parent companies.
The most chemically pure example of “Economic Complicity” in the bureaucratic administration of the occupation is the Aviv System. This system is the computerized platform of the Population and Immigration Authority (PIBA). It serves as the central registry of all Israeli citizens and, crucially, holds the data for the Palestinian residents of East Jerusalem and the occupied West Bank (via the “Yesha” database copy).11
The Aviv System was architected on HPE’s proprietary Itanium server platform. This architecture is notorious in the IT industry for high “vendor lock-in”; applications built for Itanium cannot simply be moved to standard x86 servers without a complete rewrite of the software stack. This technical debt creates a persistent dependency on HPE.
Forensic Evidence of Continuity:
In May 2023, Hewlett Packard (Israel) Ltd. was contracted by PIBA to provide three new Itanium servers for the Aviv System. The contract is valued at NIS 3,829,410 and covers the period from June 2023 until June 2026.11
Analysis of the Contract:
This procurement event definitively refutes claims that HPE has fully exited the population registry business. While the Israeli government has announced a transition to a new system called “Eitan” (operated by IBM), the legacy Aviv system remains the operational core during this prolonged migration. The purchase of new hardware in 2023, rather than just extending maintenance on old hardware, indicates that the system is expected to handle significant loads for years to come. HPE is the sole supplier capable of servicing this layer, making the company indispensable to the registry’s operation.
The audit identifies the Aviv System as a dual-use technology that facilitates apartheid-style governance. While it manages standard civil registry functions for Jewish Israeli citizens, it functions as a control mechanism for Palestinians.
Without the specific hardware support from HPE, the system’s uptime and reliability—and thus the state’s ability to process permits, control movement at checkpoints, and manage the settlement population—would be compromised. HPE is not a passive vendor here; it is the sustainer of the system’s heartbeat.
The audit reveals a deep, ongoing economic relationship between HPE and the Israel Prison Service (IPS). The IPS is responsible for the incarceration of Palestinian political prisoners, a system often cited for violations of the Fourth Geneva Convention regarding the transfer of prisoners from occupied territory into Israel and the administrative detention of individuals without trial.
Recent procurement data from 2024 establishes that HPE’s involvement with the prison system is active, direct, and financially current.
Contract Specifics:
In April 2024, the Israel Prison Service contracted Hewlett Packard Israel as a sole supplier to provide maintenance for HPE equipment. This specific contract was valued at NIS 364,075 for a duration of one year. This follows a previous exemption contract in 2023, indicating a recurring, non-competitive relationship.11
Infrastructure Scope:
The maintenance contract covers the IPS’s central server farm and its disaster recovery backup center. The specific assets identified in the tender documents include:
The presence of SAP HANA systems within the prison service is forensically significant. This is enterprise-grade technology used for complex resource planning and data analysis. In a carceral context, this suggests the IPS is running sophisticated inmate management systems, intelligence processing, or logistical operations that require high-speed data retrieval.
The SAN switches manage the storage of vast amounts of data—likely including prisoner records, biometric data, surveillance footage from within the facilities, and intelligence files. HPE is not merely selling commodity PCs to the prison administration for word processing; it is maintaining the central nervous system of the prison’s data infrastructure.
The “Kidma” information system, originally developed by HP (legacy), likely relies on this hardware to track prisoner records, intelligence, and human resources. The designation of HPE as a “sole supplier” confirms that the IPS infrastructure acts as a “walled garden” built on proprietary HPE architecture. This creates a technical dependency that ensures long-term revenue for HPE and ensures the prison service cannot easily switch vendors without significant operational disruption.4
The economic footprint extends beyond federal registries and prisons into municipal surveillance and policing, particularly in the enforcement of control in illegal settlements and the occupied West Bank.
Similar to the IPS, the Israel Police maintains a reliance on HPE infrastructure for its core data operations.
Contractual Evidence:
In January 2024, the Israel Police announced its intent to contract Hewlett Packard Israel as a sole supplier for Data Center Care services. This engagement is for an additional three-year period, ending in December 2026. The contract value is cited at NIS 4 million.11
Operational Context:
The Israel Police is not a purely civilian force; it is the primary enforcer of law in the occupied West Bank for the settler population and is frequently deployed in joint operations with the military (IDF) against Palestinians. The “Border Police” (Magav), a unit of the police, operates checkpoints and conducts military-style raids. The maintenance of the police data center ensures the continuity of intelligence, criminal records, and operational data used in these contexts. HPE’s support ensures that the digital infrastructure of the police force remains operational 24/7.4
The audit identifies direct and indirect economic interaction with settlement municipalities, which are illegal under international law. Providing services to these entities facilitates their normalization and economic viability.
Ariel “Smart City” Project:
HP (legacy) was historically contracted to implement a storage system for the Ariel municipality as part of a “Smart City” pilot project. This infrastructure supports municipal services for the settlement, such as water, electricity, and potentially security surveillance. While the initial installation was under the legacy HP entity, enterprise storage systems require ongoing support, software licensing, and hardware refreshes. Post-split, this responsibility typically falls to HPE. The continued operation of such high-tech municipal systems relies on the vendor’s ecosystem.8
Modi’in Illit (Via Matrix IT):
Matrix IT, as discussed, operates the “Talpiot” development center in Modi’in Illit. This facility is a significant employer in the settlement. While HP may not own the building, its partnership with Matrix IT facilitates the flow of HP technology and sub-contracts into this facility. Matrix serves as a conduit, allowing HP technology to power settlement-based economic activity. The integration of HP solutions into the workflow of a settlement-based tech hub normalizes the presence of the settlement and provides economic sustenance to its residents.8
Historically, HP (via its acquisition of EDS) developed the Basel System, a biometric access control system used at military checkpoints in the West Bank and Gaza (e.g., Erez, Checkpoint 300). This system scans hand geometry and facial features to verify permits.
Current Forensic Status:
Forensic review indicates that the Ministry of Defense (IMOD) has largely transitioned the daily operation of the Basel system to internal management or other integrators, and the system was technically “retired” or significantly overhauled around 2016. However, legacy hardware and the architectural framework developed by HP likely remain embedded in the system’s DNA. Complex biometric systems are rarely “ripped and replaced” entirely; they are upgraded. The continued involvement of HPE in “virtualization” projects for the MoD suggests that while the brand name “Basel” may be fading from public tenders, the function—biometric control backed by HPE server power—persists in the background. HPE’s continued dominance in MoD server farms supports the backend of whatever system has succeeded Basel.1
The Israel Defense Forces (IDF) represents a massive procurement market. The audit distinguishes between the roles of HP Inc. and HPE in this sector, revealing a symbiotic coverage of the military’s IT needs.
HP Inc. serves as a primary provider of end-user computing devices to the IDF.
PC and Printer Tenders:
Reports and historical tender data indicate that HP Inc. has held contracts to be the exclusive provider of personal computers to the Israeli military. These contracts, often structured as multi-year framework agreements, supply thousands of laptops, ruggedized tablets, and desktop workstations. These devices are used across the military spectrum, from logistics and administration to field operations and command-and-control functions.4
Peripherals and Consumables:
The supply of printers and huge volumes of ink/toner cartridges is a recurring operational expenditure. While less “strategic” than servers, the sheer volume of these consumables represents a steady revenue stream directly from the defense budget. Procurement notices from 2024 and 2025 regarding toner cartridges suggest a continuous flow of these supplies to government and defense entities.1
HPE’s involvement is more structural and strategic, focusing on the backend infrastructure that powers military operations.
Virtualization Projects:
HPE (and formerly HP) executed virtualization projects for the Israeli Navy. Virtualization allows the military to run multiple operating systems and applications on fewer physical servers, increasing efficiency, redundancy, and disaster recovery capabilities for naval command systems. This infrastructure is critical for the Navy, which is the primary enforcer of the naval blockade on the Gaza Strip. The stability of these systems is a matter of operational combat readiness.1
Server Farms and Logistics:
HPE has managed server farms for the MoD. Although some contracts were challenged by Cisco in 2017, the deep integration of HPE blade servers and storage solutions typically results in a hybrid environment where HPE remains a key vendor for specific mission-critical workloads. The “Ofek Rahav” military camp tender, won by Malam Team, utilizes sophisticated IT infrastructure. As Malam is a Platinum Partner of HPE, it is highly probable that HPE hardware forms the core of this new military logistics hub.4
It is forensically relevant to note that Dell Technologies has recently won significant tenders (valued at over $150 million in 2023) to supply servers to the MoD, potentially displacing some of HPE’s market share in the commodity server space.24
Forensic Implication:
This loss of market share does not absolve HPE of complicity; rather, it suggests a market duopoly. Enterprise IT environments are rarely homogenous; they are heterogeneous. The MoD likely runs a hybrid environment where Dell provides the bulk commodity infrastructure while HPE retains specialized, legacy, or high-performance niches (like the Navy virtualization and specific secure databases). Both US tech giants effectively provide the redundant infrastructure necessary for the military’s “kill chain” logistics. HPE’s retention of the PIBA (Aviv) and IPS contracts suggests it maintains its stronghold in the civil-military bureaucratic layer, while Dell expands in the direct military tactical layer.
While contracts for surveillance and prisons constitute “complicity” via service provision, HP Inc.’s ownership of HP Indigo represents “complicity” via deep economic integration, capital investment, and the normalization of the Israeli economy.
HP Indigo is one of the most significant foreign investments in Israel’s high-tech history. It is a dominant global player in the digital printing market, and its center of gravity is entirely within Israel.
Locations and Land Use:
The division operates R&D facilities in Ness Ziona and massive ink/press manufacturing plants in Kiryat Gat. It is crucial to note that Kiryat Gat is built partly on the lands of the depopulated Palestinian villages of Al-Faluja and Iraq al-Manshiyya. By maintaining massive fixed capital assets on this land, HP Inc. is physically entrenched in the geography of displacement.5
Export Volume and Economic Impact:
Trade data analysis reveals the scale of this operation. Volza trade data indicates that HP Indigo Ltd. executed over 57,000 export shipments. The company exports billions of dollars in digital presses and proprietary “ElectroInk” annually to markets in the US, Europe, and Asia. This volume makes HP Inc. one of Israel’s largest exporters.14
Tax Revenue:
As a major exporter, HP Indigo contributes significantly to the Israeli tax base. These tax revenues fund the state’s general budget, which includes military spending and settlement expansion. The company benefits from government grants and substantial tax breaks under the Law for the Encouragement of Capital Investments, creating a mutual financial dependency between the corporation and the state.13
Recent financial pressures have led to layoffs at HP Indigo. In 2023, 2024, and projected for 2025, HP Indigo executed rounds of layoffs (approximately 100 employees per round) in its Ness Ziona and Kiryat Gat facilities.
Forensic Implication:
These layoffs reflect global market trends in the printing sector but also highlight the vulnerability of the Israeli tech sector to global economic shifts. However, despite the cuts, HP remains committed to the facility, investing in new ink plants and LEED-certified buildings. This indicates a long-term strategic commitment to Israel as a manufacturing hub. HP cannot easily “leave” Israel; its intellectual property and manufacturing expertise for Indigo are localized there. This effectively traps HP Inc. in a position where it must maintain good relations with the Israeli government to protect its most valuable printing asset.17
A sophisticated supply chain audit reveals that HP and HPE increasingly utilize local “Partner” firms to execute sensitive contracts. This structure allows the US parent companies to claim they do not directly contract with settlements or specific military units, while their hardware flows freely to them via authorized channels.
HPE and HP Inc. utilize a tiered partner system (Platinum, Gold, Silver). These partners are authorized to sell, install, and service HP products.
Malam Team (HPE Platinum Partner):
Malam Team is a massive Israeli IT integrator. It builds data centers for the military (e.g., the “Ofek Rahav” camp tender). By selling hardware to Malam Team, HPE facilitates the construction of military infrastructure without directly signing the MoD construction tender. Malam Team effectively acts as the “prime contractor,” purchasing HPE gear as a sub-component. This allows HPE to book the revenue as a commercial sale to a distributor rather than a defense contract.20
Matrix IT (Partner):
As noted, Matrix IT operates in the West Bank and is a major distributor of HP software and hardware solutions. Their integration with the “Nimbus” government cloud project (alongside Google/Amazon) and their work with the Civil Administration (ICA)—providing system analysts for the “Wisdom Stone” (system for Palestinian permits)—further embeds HP technologies into the occupation’s bureaucracy. Matrix’s status as a partner means HP certifies and supports Matrix in these endeavors.10
The forensic mechanism of this supply chain laundering is as follows:
HP Inc. and HPE do not break out Israel-specific revenue in their 10-K filings, usually aggregating it under the “EMEA” (Europe, Middle East, Africa) geographic segment. However, local trade data and tender values provide estimates of the scale.
BDS and Divestment:
The transparency of these contracts—specifically the Basel, Aviv, and IPS connections—has made HP a primary target of the BDS (Boycott, Divestment, Sanctions) movement. Several student governments, trade unions, and church funds have divested from HP/HPE citing these specific forensic links. The “Stop HP” campaign is one of the most visible corporate boycott campaigns globally.8
Legal Risk:
The continuation of services to settlements (via Matrix) and the IPS (direct contracts) places HP/HPE in potential conflict with emerging supply chain due diligence laws in Europe (e.g., the EU Corporate Sustainability Due Diligence Directive – CSDDD). These laws require companies to identify and mitigate human rights risks in their value chain. Providing biometrics to an occupation force or infrastructure to a settlement may act as a trigger for liability under these new legal frameworks.
The forensic mapping of HP Inc. and Hewlett Packard Enterprise reveals a bifurcated but deeply entrenched economic complicity with the Israeli state apparatus.
HPE serves as the architect of control. Its servers and storage solutions form the bedrock of the Population and Immigration Authority (Aviv System) and the Israel Prison Service. These are not passive commercial relationships; they are sole-source maintenance contracts that ensure the operational continuity of systems used to document, track, and incarcerate the Palestinian population. The acquisition of Israeli cyber firms like Axis Security further intertwines HPE’s future growth with Israel’s military-industrial innovation sector.
HP Inc. functions as the industrial anchor. Through HP Indigo, it provides significant employment and tax revenue, legitimizing the Israeli economy while utilizing the “Start-Up Nation” branding to market its digital printing prowess. Its supply of endpoints (PCs) to the IDF ensures the military’s daily administrative functionality.
The Supply Chain Obfuscation: Both entities effectively utilize local integrators like Matrix IT and Malam Team to bridge the gap between corporate compliance policies and the reality of servicing illegal settlements and military bases. This intermediary layer is the primary mechanism by which HP technology permeates the occupation infrastructure while maintaining a degree of corporate distance.
Final Determination: The audit concludes that both HP Inc. and HPE possess a high degree of economic integration with entities directly responsible for the occupation of Palestine and the management of the Israeli security state. The transition from legacy systems (Basel) has not severed these ties; rather, it has shifted them toward critical backend infrastructure maintenance and industrial manufacturing.
| Entity | Client / Project | Role | Status / Duration | Source |
| HPE Israel | Population & Immigration Authority (PIBA) | Sole Supplier of Itanium Servers for “Aviv” System | Active: June 2023 – June 2026 (NIS 3.8M) | 11 |
| HPE Israel | Israel Prison Service (IPS) | Sole Supplier: Server Farm Maintenance (SAP HANA, SAN) | Active: Contracted April 2024 (NIS 364k/yr) | 11 |
| HPE Israel | Israel Police | Sole Supplier: Data Center Care | Active: Intention to contract through Dec 2026 (NIS 4M) | 11 |
| HP Inc. | Israel Defense Forces (IDF) | Exclusive Supplier of PCs / Peripherals | Ongoing framework agreements (legacy & renewals) | 4 |
| HP Inc. | HP Indigo (Internal) | Manufacturing & Export (Kiryat Gat) | Active: Major employer & exporter (despite layoffs) | 5 |
| Matrix IT | Modi’in Illit Settlement | Operates “Talpiot” development center | Active: employs settlers, distributes HP tech | 10 |
| Malam Team | Ministry of Defense (MoD) | Main IT Contractor (“Ofek Rahav” Camp) | Active: 25-year tender (utilizes HPE tech) | 20 |
11
The data definitively refutes the claim that HPE has fully exited the population registry business. While IBM won the tender for the new “Eitan” system, the legacy “Aviv” system remains the operational core during the transition. The purchase of new Itanium servers in 2023 for a period extending to 2026 demonstrates that PIBA cannot function without HPE hardware. The Itanium architecture is specific to HPE; no other vendor can service this layer. This creates a “vendor lock-in” where HPE is contractually bound to support the system that manages the “Yesha” settlement registry and Palestinian permits.
11
The specificity of the hardware listed in the IPS contract—SAP HANA and SAN Switches—is forensic gold. SAP HANA is an enterprise-grade, in-memory database used for massive data processing. For a prison service, this implies a highly digitized inmate management system. The “Sole Supplier” justification indicates that the IPS infrastructure was architected around HPE technologies, making the cost of switching to Dell or Lenovo prohibitive. Thus, HPE profits from the inertia of its past installations.
10
Matrix IT is not just a reseller; it is an operator in the settlements. By maintaining the “Talpiot” facility in Modi’in Illit, Matrix IT benefits from the low cost of labor (ultra-orthodox women) and available land in the settlement. When HP lists Matrix IT as a business partner, it is integrating this settlement-based value chain into its own ecosystem. Matrix’s work with the Civil Administration (ICA)—providing system analysts for the “Wisdom Stone” (system for Palestinian permits)—further bridges the gap between HP technology and the bureaucratic administration of the occupation.
14
Volza trade data indicates HP Indigo Ltd. executed over 57,000 export shipments. This underscores the massive scale of HP’s industrial operation in Israel. Unlike the service contracts (which are in the millions of shekels), the Indigo operation represents billions of dollars in trade value. This is the “Economic Complicity” of normalization—treating Israel as a stable, high-tech manufacturing hub despite the geopolitical context.
15
HPE’s acquisition of Axis Security is a strategic deepenings. Instead of just selling to Israel, HPE is buying Israeli innovation. This integrates Israeli cyber-tech (often developed by veterans of Unit 8200) into HPE’s global product line (GreenLake). This creates a bidirectional dependency: HPE relies on Israeli R&D for its security edge, and the Israeli tech sector relies on HPE for exit liquidity.
24
The entry of Dell Technologies into the MoD server market ($150M tender) is a critical forensic detail. It suggests that the MoD is diversifying its supply chain. However, it does not clear HPE. In enterprise IT, environments are rarely homogenous. The MoD likely runs a hybrid environment. HPE retains the specialized, legacy, and high-performance niches (like the Navy virtualization), while Dell captures the bulk commodity server market. Both companies are now deeply embedded in the MoD’s “kill chain” logistics.
Report filed by Forensic Supply Chain Auditor on January 19, 2026.
