“The article was a shocking piece of blatant racism,” Israeli Foreign Ministry spokesman Yigal Palmor said of a Swedish journalist’s report that Israel was harvesting organs from Palestinians. Charges of European anti-Semitism and revived blood libels exploded. The journalist in question, Donald Bostrom, reiterated to the press that he had no specific evidence of present-day kidnappings and organ harvesting, but called for inquiries into numerous claims such happened in the 1990s.
This weekend, the Israeli Defense Forces spokesperson confirmed the rumor after an interview with a head Israeli researcher was broadcast on Israel’s Channel 2 news. From JTA:

The admission came after the release of a 2000 interview with Dr. Yehuda Hiss, who was the head of Israel’s L. Greenberg Forensic Institute in Abu Kabir, The Associated Press reported.
Hiss told an American academic in the interview, parts of which were broadcast on Israel’s Channel 2 over the weekend, that the institute used corneas from bodies, including Israeli soldiers, Palestinians and foreign workers. Channel 2’s report said that corneas, heart valves, skin and bones were used from the corpses without families’ permission.

I’m going to forgo more commentary presently, because I’m a little sick in the stomach, both from that this actually happened and because of the fuel this gives to our haters.