Dutch pension giant ditches Israeli banks over involvement with settlements 8Jan14 January 8, 2014
by Alex KaneÂ Â Â -Â Â Â MONDOWEISSÂ Â Â Â -Â Â Â 8 January 2014
Major Israeli financial institutions woke up to the news today that a Dutch pension fund has pulled out its investments because of the banksâ involvement in the occupied West Bank. Â The move, first reported by Haaretzâs Barak Ravid, means that tens of millions of euros from the fund would be pulled out from five Israeli banks:Â Bank Leumi, Bank Hapoalim,Â Bank Mizrahi-Tefahot, Israel Discount Bank andÂ the First International Bank of Israel.
The pension fund that made the announcement is PGGM, one of the biggest in the world. The banks affected have either branches in illegal settlements or finance the settlementsâ construction.
In a statement, PGGM explained that the decision to divest came after engagement with the banks made clear they would not halt activities in the occupied territories. Â âFor several years PGGM has been in dialogue with these banks,â the statement said. âThe reason for this engagement was their involvement in financing Israeli settlements in the occupied Palestinian territories. This was a concern, as the settlements in the Palestinian territories are considered illegal under international humanitarian law.â
PGGM cites the International Court of Justiceâs 2004 advisory opinion that West Bank settlements are in violation of the Geneva Convention.
PGGMâs âengagementâ elicited responses from Israeli banks, who said that âIsraeli law doesnât allow them to cease providing service to entities connected to the settlements,â according to Haaretz.
Israeli banks are an integral part of the West Bank settlement project. Â The Electronic Intifadaâs Asa Winstanley explains:
Israeli banks have been a BDS target for some time.
In theÂ 2011 book that I editedÂ with Frank Barat, Mirav Amir ofÂ Who ProfitsÂ showed that âThere is solid evidence of the involvement of most of the major Israeli commercial banksâ in a long list of financial services to settlements. These include âspecial loansâ made with the explicit purpose of encouraging Israeli colonization of Palestinian land in the West Bank.
Indeed, Amir said, âmost Israeli banksâ have branches open in settlements.
In 2010, the Israeli group Who Profits released a report on Israeli banksâ involvement in the occupation.
In its statement, PGGM added that it âcontinues its dialogue with a small number of other companies on the same issue and will report on progress through its regular reporting.â Â That could mean more divestment announcements in the future.
The Dutch pension giantâs move comes a month after a Dutch water company suspended its cooperation with Israelâs national water company because of the latterâs involvement in the occupied territories. Â The Palestinian-led boycott, divestment and sanctions (BDS) movement applauded that suspension in a statement. Â And in September, a Dutch engineering company withdrew its involvement in a sewage treatment plan because it was going to be built in occupied East Jerusalem.Â Â The Dutch government has advised businesses in its country to avoid dealing with the occupation and settlements.