Cardiff council backs Plaid Cymru and Labour motion to disinvest pension fund from companies complicit in Israel's war crimes

Martin Shipton

Cardiff council has passed a resolution that could see it become the first local authority in Wales to disinvest its pension fund from companies considered complicit in Israel’s alleged war crimes and breaches of international law.

The motion, moved by Plaid Cymru councillor Andrea Gibson as amended by Labour councillor Dan De’Ath, attracted 54 votes, with just four against. .

The debate took place after a petition bearing the signatures of 1,200 Cardiff residents calling for disinvestment from Israel’s genocide and apartheid against Palestinians. The petition was sponsored by the Palestine Solidarity Campaign (PSC) and the Muslim Council of Wales.

Cllr Gibson told the council that its decision was in line with public opinion in Cardiff, and that across the country a clear majority now exists which supports a full arms embargo on Israel and a call for selective sanctions on Israeli goods and government representatives.

[mid-content-banner]

'Harrowing'

The motion states, in particular, that Cardiff council “notes the ongoing, deeply concerning and harrowing conflict in Gaza has resulted in significant loss of innocent life, believes public sector pension fund investments in Cardiff and across Wales should not fund war crimes, human rights violations, or the potential breaking of international law regardless of how profitable they are, and agreed to express in strong terms its view that it does not wish to be associated with companies potentially complicit in war crimes in conflicts”.

PSC claims to have identified that the Cardiff pension fund invests £117m in 52 companies which are in breach of international law by facilitating genocide and illegal land settlement.

The sum of £117m is said to represent a mere 3.7% of the pension fund’s total investment pot.

PSC takes the view that it would be perfectly feasible to achieve the total divestment from the companies concerned without impacting the fund’s legal fiduciary responsibilities to achieve the best returns for pensioners.

[lower-mid-content-banner]

Complicit investments

PSC also maintains the view that its research has identified a larger amount of complicit investments than that reported by the council’s pension fund committee. It says its research is at the disposal of the committee, if it can help with identifying complicit entities.

Examples of Cardiff Pension Fund’s current complicit investments were said to include:

* £4.9m in four Israeli banks: Leumi, Hapoalim, Mizrahi Tefahot Bank and Israeli Discount Bank, which finance construction of illegal Israeli settlements on Palestinian land;

* £2.3m in the Israeli real estate group, operating on Palestinian land;

* £5.5m in Barclays, which raises billions of pounds to fund weapons;

* £1.1m in Palantir, which is in a “strategic partnership” with Israel’s Ministry of Defense, providing advanced AI tools to enable attacks on Palestinians.

* £29m in Alphabet, which has been co-developing cloud computing services for the Israeli state and the Israel Defence Forces (IDF).

* £3m in BAE Systems, which makes components for combat aircraft, munitions, missile launching kits, and armoured vehicles for the IDF.

In submitting the petition to the council, Farooq Toor of the Muslim Council of Wales said: “The human cost of Israel’s war against Palestinians is immense. It is the greatest human catastrophe of our generation. The international community has failed in its duty to protect Palestinians or to curb Israel’s unchecked aggression.”

'Ethical public policy'

Cllr Gibson said: “Plaid Cymru’s motion offers Cardiff council the opportunity to be the first local authority in Wales to move its pension fund away from investing in companies complicit in war crimes and breaches in international law. This will hopefully speak to all involved in the pension scheme and express a clear view against contributing to harmful practices against Palestinians in Gaza, and is a practical step to advancing ethical public policy in the capital.”

Clive Haswell, the co-chair of Cardiff PSC, said: “The council is to be congratulated in taking a bold step towards divesting its pension fund from companies collaborating in genocide, ethnic cleansing and land theft – all war crimes or breaches of international law. As we witness every day, examples of these crimes are being committed against Palestinians in Gaza and the occupied territories. There is no time to waste in applying this new policy to its full extent to bring pressure to bear on complicit companies, and on Israel itself.”

Cllr De’Ath said: “The situation in Gaza is an abomination. Everyone condemned South African apartheid in the 1980s – once it was over.”

Labour councillor Chris Weaver, who chairs the authority’s pension committee and seconded the amendment, said: “Cardiff council wants to be seen as a model for ethical investment.”

Opposition to the motion came from the Conservatives, with Cllr Calum Davies claiming that the Boycott, Disinvestment and Sanctions campaigns against Israel were antisemitic.