If we're going to talk about Nazis and Israel Palestine lets stick to the facts.
On the Palestinian side there was The grand Mufti, Haj Amin al-Husseini.
His opposition to the British peaked during the 1936–39 Arab revolt in Palestine. In 1937, evading an arrest warrant, he fled Palestine and took refuge in, successively, the French Mandate of Lebanon and the Kingdom of Iraq, until he established himself in Italy and Germany. During World War II he collaborated with both Nazi Germany and Fascist Italy by making propagandistic radio broadcasts and by helping Germans recruit Bosnian Muslims for the Waffen-SS. On meeting Adolf Hitler he requested backing for Arab independence and support in opposing the establishment in Palestine of a Jewish national home. At war's end, he came under French protection, and then sought refuge in Cairo to avoid prosecution.
Then there's the Lehi.
Lehi split from the Irgun militant group in 1940 in order to continue fighting the British during World War II. Lehi initially sought an alliance with Fascist Italy and Nazi Germany, offering to fight alongside them against the British in return for the transfer of all Jews from Nazi-occupied Europe to Palestine. On the belief that Nazi Germany was a lesser enemy of the Jews than Britain, Lehi twice attempted to form an alliance with the Nazis. During World War II it declared that it would establish a Jewish state based upon "nationalist and totalitarian principles"
Of the two Haj Amin al-Husseini's position is easier to understand, after all Hitler was the enemy of both the British and the Jews, the enemies of Palestinian nationalism. The Lehi though, they knew what Hitler was like, this may not have been after the liberation of concentration camps, but it was after Kristallnacht, and knowing all that they were still willing to enter an alliance with him.
Even after the war being a Nazi didn't necessarily make you persona non grata in Israel.
Israel was openly critical of apartheid through the 1950s and 60s as it built alliances with post-colonial African governments. But most African states broke ties after the 1973 Yom Kippur war and the government in Jerusalem began to take a more benign view of the isolated regime in Pretoria. The relationship changed so profoundly that, in 1976, Israel invited the South African prime minister, John Vorster - a former Nazi sympathiser and a commander of the fascist Ossewabrandwag that sided with Hitler - to make a state visit.
Leaving unmentioned Vorster's wartime internment for supporting Germany, Israel's prime minister, Yitzhak Rabin, hailed the South African premier as a force for freedom and made no mention of Vorster's past as he toured the Jerusalem memorial to the six million Jews murdered by the Nazis. At a state banquet, Rabin toasted "the ideals shared by Israel and South Africa: the hopes for justice and peaceful coexistence". Both countries, he said, faced "foreign-inspired instability and recklessness".
The biggest secret of all was the nuclear one. Israel provided expertise and technology that was central to South Africa's development of its nuclear bombs. Israel was embarrassed enough about its close association with a political movement rooted in racial ideology to keep the military collaboration hidden.
That's right, when Israel met a real genuine bona fide Nazi they decided to collaborate together in developing the nuclear bomb.