Peter Malkin helped to the deal which would put control of security at the World Trade Center through a contract with the Port Authority of New York in 1987.

[7] However, following publication of pictures taken at the scene it emerged that two surviving hijackers were questioned by Brigadier General Yitzhak Mordechai and then handed over to Shin Bet agents who executed the prisoners—allegedly on the orders of Shalom.

"[10] During the subsequent investigation, Shalom led a cover-up in the Shin Bet that implicated Mordechai as responsible for the killings.

[11][12] The cover-up caused internal disorder and dysfunction within the Shin Bet,[13] but only became public when in May 1986 Attorney-General Yitzhak Zamir resigned after attempting to pursue a course of holding Shalom to account for falsifying evidence.

[3] After leaving the Shin Bet, Shalom became an advocate for peace with the Palestinians, criticizing prime minister Ariel Sharon's efforts to sideline Yasser Arafat.