OSLO/COPENHAGEN: Norway’s sovereign wealth fund, the world’s largest, said on Monday it had decided to exclude another six companies with connections to the West Bank and Gaza from its portfolio, following an ethics review of its Israeli investments.
The $2 trillion wealth fund did not name the companies it had decided to exclude but said these would be made public, along with specific reasons for each company, once the divestments were completed.
One possibility could be that among them are Israel’s five largest banks, which have been under review by the fund’s ethical watchdog.
The latest exclusions bring to 23 the number of Israeli companies the fund has been divesting from since June 30. That number may rise.
“More companies could be excluded,” Finance Minister Jens Stoltenberg told reporters.
Currently the fund holds stakes in 38 Israeli companies, totalling 19 billion crowns ($1.9 billion) in investments, down from 61 companies totalling 23 billion crowns, as of June 30, the fund’s operator, Norges Bank Investment Management, said in a letter dated Monday.
Review
The latest announcement follows an urgent review launched this month after reports that the fund had built a stake in an Israeli jet engine group that provides services to Israel’s armed forces, including the maintenance of fighter jets.
The reports spurred a fresh debate about the fund’s investments in Israel and the occupied Palestinian territories ahead of elections on Sept. 8, with some parties calling for the fund to divest from all Israeli companies, a step the government has ruled out.
Norway’s parliament in June rejected a proposal for the fund to divest from all companies with activities in the occupied Palestinian territories.
“This debate helps sharpen our practices,” said Stoltenberg.
Critics say only a complete withdrawal from investing in Israeli companies would protect the fund against possible ethical breaches.
Stoltenberg said that, from now on, the ethics watchdog and NBIM would have more frequent and faster exchanges of information between them to identify problematic companies quicker.
Ethical exclusions from the fund are based on recommendations from the fund’s watchdog, though NBIM can also divest from companies if it assesses that a company can pose too much of a risk to the fund, whether the risk is ethical or not.
“With more exchanges of information between the Council on Ethics and Norges Bank, it is possible that there could be more divestments of that kind in future,” said Stoltenberg.
Last Monday, the fund announced it was terminating contracts with all three of its external asset managers who handled some of its Israeli investments.
Norway wealth fund excludes six companies linked to West Bank, Gaza
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Norway wealth fund excludes six companies linked to West Bank, Gaza
- Currently the fund holds stakes in 38 Israeli companies, totalling $1.9 billion in investments, down from 61 companies totalling 23 billion crowns, as of June 30
Soldiers on the streets. What’s behind South Africa’s plan to deploy army in high-crime areas
JOHANNESBURG: It’s an unusual move for the African continent’s leading democracy: South Africa’s president announced earlier this month that he will deploy the army to high-crime areas to fight the scourge of organized crime, gang violence and illegal mining.
President Cyril Ramaphosa said soldiers would take to the streets — in places that have some of the world’s highest rates of violent crime — to combat what he described as the “most immediate threat” to South Africa’s democracy and economic development.
He said the deployment would happen in three of the country’s nine provinces, without giving a timeline. Some critics, however, say the army deployment could be seen as an admission that Ramaphosa’s government is losing the battle.
A top tourist city marred by violence
With a population of some 3.8 million, the stunningly beautiful Cape Town is South Africa’s second-largest city and one of its top tourist attractions.
But the neighborhoods on its outskirts, known as the Cape Flats, are notorious for deadly gang violence.
Street gangs with names such as the Americans, the Hard Livings and the Terrible Josters have for years battled for control of the illegal drug trade, while also being involved in extortion rackets, prostitution and contract killings.
Bystanders, including children, are often caught in the crossfire and killed in gang-related shootings. According to the latest crime statistics, South Africa’s three police precincts with the most serious crime rates are all in and around Cape Town.
Ramaphosa said one part of the army would deploy in the Western Cape province, where Cape Town is located and which statistics say has around 90 percent of the country’s gang-related killings.
Two other provinces, he said, would also see troop deployments: Gauteng, which is home to Johannesburg, South Africa’s biggest city, and the Eastern Cape province.
Illegal mining run by organized crime syndicates
The outskirts of Johannesburg and the wider Gauteng province are dotted with abandoned mine shafts and authorities there have long grappled with illegal gold mining.
They say the mining gang, known as zama zamas, are typically run by heavily armed crime syndicates, brutal in protecting their operations. They use “informal miners” recruited from desperate and impoverished communities to go into the shafts, searching for leftover precious deposits.
These gangs are often connected to high-profile violence, including a 2022 case that shocked South Africa when around 80 alleged illegal miners were accused of gang raping eight women who were part of a music video shoot at an abandoned mine.
Last year, a standoff between police and illegal miners in an abandoned mine left at least 87 miners dead after police took a hard-line approach and cut off their food supplies in an attempt to force them out.
The illegal miners are often involved in other crimes in nearby communities, analysts say, and turf battles between rival gangs have forced people to leave their homes and seek safety elsewhere.
Authorities say there are an estimated 30,000 illegal miners in South Africa, operating in some of its 6,000 abandoned mine shafts.
The government has noted an increase in illegal mining, which it estimates is worth more than $4 billion a year in gold lost to criminal syndicates.
The trade is believed to be predominantly controlled by migrants from neighboring Lesotho, Zimbabwe, and Mozambique, stoking anger among South African communities against both the criminal bosses and foreigners living in the local community.
Previous army deployments linked to apartheid
Ramaphosa is well aware that South Africans old enough to remember the years of forced racial segregation under the apartheid system, which ended in 1994, likely will recall images of troops deployed to suppress pro-democracy protests.
Mindful of that painful past, he said it was important not to deploy the army “without a good reason.”
But he said it has now “become necessary due to a surge in violent organized crime that threatens the safety of our people and the authority of the state.”
Ramaphosa sought to calm concerns by saying the army would operate under police command.
There have been other recent deployments of South African troops. In 2023, soldiers fanned out into the streets after a series of truck burnings raised concerns over wider public disorder. And around 25,000 troops were deployed in 2021 to quell violent riots sparked by the imprisonment of former President Jacob Zuma.
South Africa also used soldiers to enforce strict lockdown rules during the early months of the COVID-19 pandemic in 2020.
Crime experts have expressed concern over Ramaphosa’s latest deployment plans, insisting the army is not a long-term solution to fighting crime and soldiers are not experts in domestic law enforcement.
Firoz Cachalia, the country’s police minister, has backed Ramaphosa and insisted the army will act in support of police and “their operations in particular locations.”
He said the deployment is time-limited and meant to stabilize areas “where people are losing their lives” every day.
President Cyril Ramaphosa said soldiers would take to the streets — in places that have some of the world’s highest rates of violent crime — to combat what he described as the “most immediate threat” to South Africa’s democracy and economic development.
He said the deployment would happen in three of the country’s nine provinces, without giving a timeline. Some critics, however, say the army deployment could be seen as an admission that Ramaphosa’s government is losing the battle.
A top tourist city marred by violence
With a population of some 3.8 million, the stunningly beautiful Cape Town is South Africa’s second-largest city and one of its top tourist attractions.
But the neighborhoods on its outskirts, known as the Cape Flats, are notorious for deadly gang violence.
Street gangs with names such as the Americans, the Hard Livings and the Terrible Josters have for years battled for control of the illegal drug trade, while also being involved in extortion rackets, prostitution and contract killings.
Bystanders, including children, are often caught in the crossfire and killed in gang-related shootings. According to the latest crime statistics, South Africa’s three police precincts with the most serious crime rates are all in and around Cape Town.
Ramaphosa said one part of the army would deploy in the Western Cape province, where Cape Town is located and which statistics say has around 90 percent of the country’s gang-related killings.
Two other provinces, he said, would also see troop deployments: Gauteng, which is home to Johannesburg, South Africa’s biggest city, and the Eastern Cape province.
Illegal mining run by organized crime syndicates
The outskirts of Johannesburg and the wider Gauteng province are dotted with abandoned mine shafts and authorities there have long grappled with illegal gold mining.
They say the mining gang, known as zama zamas, are typically run by heavily armed crime syndicates, brutal in protecting their operations. They use “informal miners” recruited from desperate and impoverished communities to go into the shafts, searching for leftover precious deposits.
These gangs are often connected to high-profile violence, including a 2022 case that shocked South Africa when around 80 alleged illegal miners were accused of gang raping eight women who were part of a music video shoot at an abandoned mine.
Last year, a standoff between police and illegal miners in an abandoned mine left at least 87 miners dead after police took a hard-line approach and cut off their food supplies in an attempt to force them out.
The illegal miners are often involved in other crimes in nearby communities, analysts say, and turf battles between rival gangs have forced people to leave their homes and seek safety elsewhere.
Authorities say there are an estimated 30,000 illegal miners in South Africa, operating in some of its 6,000 abandoned mine shafts.
The government has noted an increase in illegal mining, which it estimates is worth more than $4 billion a year in gold lost to criminal syndicates.
The trade is believed to be predominantly controlled by migrants from neighboring Lesotho, Zimbabwe, and Mozambique, stoking anger among South African communities against both the criminal bosses and foreigners living in the local community.
Previous army deployments linked to apartheid
Ramaphosa is well aware that South Africans old enough to remember the years of forced racial segregation under the apartheid system, which ended in 1994, likely will recall images of troops deployed to suppress pro-democracy protests.
Mindful of that painful past, he said it was important not to deploy the army “without a good reason.”
But he said it has now “become necessary due to a surge in violent organized crime that threatens the safety of our people and the authority of the state.”
Ramaphosa sought to calm concerns by saying the army would operate under police command.
There have been other recent deployments of South African troops. In 2023, soldiers fanned out into the streets after a series of truck burnings raised concerns over wider public disorder. And around 25,000 troops were deployed in 2021 to quell violent riots sparked by the imprisonment of former President Jacob Zuma.
South Africa also used soldiers to enforce strict lockdown rules during the early months of the COVID-19 pandemic in 2020.
Crime experts have expressed concern over Ramaphosa’s latest deployment plans, insisting the army is not a long-term solution to fighting crime and soldiers are not experts in domestic law enforcement.
Firoz Cachalia, the country’s police minister, has backed Ramaphosa and insisted the army will act in support of police and “their operations in particular locations.”
He said the deployment is time-limited and meant to stabilize areas “where people are losing their lives” every day.
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