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Stop CPP investments in firms selling military, police, spy or prison-related products
to Israel

EMC
Corp.

Canada
Pension
Plan
(CPP)
Investment
in 2011

=     
$18 million

This is the online version of
"
Profiting from Israeli Apartheid:
Canada Pension Plan (CPP) Investments in Corporations Supporting Israelís Military-, Police-, Surveillance-, Prison-Industrial Complex (Part 1)"
(Here's a coupon to subscribe, renew, order copies or make a donation to COAT.  To pay online, use the "Transfer Funds" button at the COAT homepage.)

Investments in EMC by other
Top Canadian Pension Funds:
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Find out what you can do to help this campaign.
Caisse 43,170,000
PSPI 15,971,000
Total = $77,141,000


EMC is a US-based information technology (IT) company with total assets of about US$31 billion (2010). Referred to by Israelís business newspaper, Globes, as "the worldís largest data storage systems company," EMC helps governments and corporations to store, manage, protect and analyse their information.

The company supplied US$188 million worth of products and services to various US military departments and agencies between 2000 and 2009.

EMCís global partners include such IT giants as Cisco, Dell and Hewlett-Packard. (See p.19, p.24, and pp.36-37.) Like these partners, EMC counts Israelís Ministry of Defense among its valued customers, and supplies it with products used to store "mission-critical data."

EMC has had a base of operations in Israel since at least 1997. The American-Israeli Cooperative Enterprise explains that EMC still "does so much business in Israel that it is able to maintain an R&D plant there, and also has its own sales office to handle customers." EMCís Israeli clients include Bezeq, the Israel Discount Bank (IDB) and El Al which Ė fuelled largely by Paz Oil Ė is the Israeli airline whose cargo operations have transported millions of rounds of US munitions to Israel for decades. (See Bezeq, pp.11-12, (See IDB and Paz Oil in table "CPP Investments.")

A seven-year corruption probe by the Israeli police and Israelís Ministry of Defense was sparked in 2002 when EMC suspiciously received a digital storage contract from the Israel Defense Forces (IDF). Investigators suspected that Defense Ministry officials had leaked secret information to EMC from the closed tenders of other companies. EMCís use of this "insider" information is alleged to have allowed it to beat rival bids from Hitachi Data Systems and Hewlett-Packard. (See Hitachi, p.38, and HP, pp.36-37.)

Yehuda Cohen, who was then in charge of procurement at Hewlett Packard, told Israelís Haaretz newspaper, "As early as the next day [after EMC won], I knew that our competitors had known everything about our price bid." The Israeli militaryís US procurement office was then led by Haim Adar. Haaretz revealed that when Adar later retired, he was hired as an "external adviser to EMC and other firms who do business with the Defense Ministry." Unfortunately, Israeliís Defense Ministry stopped its corruption investigation "due to fears it would harm Israel-U.S. ties."

The Haaretz report also revealed that the IDF had "various problems" with the EMC system it purchased in 2002. These "technical problems made it difficult to analyze intelligence" during what the IDF called "Operation Defensive Shield," which was Israelís largest military operation in the West Bank since the Six-Day War of 1967. "It took 24 hours," Haaretz reported, "to correct the problems and restore the intelligence systems to working order." Despite this, "the IDF continued to work with EMC, and over the next few years the firm won several other contracts for data storage systems worth tens of millions of dollars."

One such EMC contract with the IDF began in 2006, the year of Israelís bombardment of Lebanon. Israelís Globes business paper said that this three-year, US$30-million contract was "the largest [data] storage systems contract in Israel." Then, in 2010, the IDF awarded a storage-system contract to EMC and its competitor-cum-partner, NetApp. (See NetApp in table "CPP Investments.") This five-year contract was worth between US$100-$120 million.

In December 2011, EMC won a contract to provide a "unified infrastructure to serve the diverse document management and archiving requirements" of "all ministries and offices" of the Israeli government. EMC says this "project is considered to be one of the most strategic cross government tenders issued by the government in Israel in recent years."

EMC also services Israelís military through its subsidiary, VMWare, which produces virtualization software. (See VMWare in table "CPP Investments.")

EMCís "Security Division," RSA Security, provides an "advanced access control system" called SecurID. It "is the top and most popular Strong Authentication system in Israel" for "verifying user identity." SecurID is used by the Israeli Police. Other Israeli clients using this EMC product are Amdocs, Comverse and Cellcom. (See pp.5-6, pp.43-47 and pp.17-18.) Other EMC clients include Israel Discount Bank, MIRS (Motorola), Nice Systems and Pelephone. (See Israel Discount Bank, MIRS (Motorola), Nice Systems and Pelephone in table "CPP Investments.")

Business Weekís online "Executive Profiles" reveals the Israeli military and intelligence backgrounds of some EMC executives. For example, Doron Kempel, the former Vice President and General Manager for EMCís Media Solutions Group, had previously "served in multiple command roles as an officer in the Israel Defense Forces."

And then thereís Gili Raanan, who "spent nine years at the Israeli Intelligent Corps" and "recently served as a Vice President of Strategy at EMC Corp." During his more than 10 years with the "Israeli government in several key innovative software projects,Öhe was awarded the Israel Security Presidential Award in 1996 and the Israeli Defense Forces Innovation award in 1992." Raanan was also a Senior Product Manager at Amdocs.

 

 

COAT research (published in Issues 66 and 67 of Press for Conversion!) exposes that in 2011 the CPP owned about $1.5 billion worth of shares in 68 corporations supplying Israel with military, police, surveillance and prison-related products.

To read COAT's research on the first half of
these 68 companies, click the pdf links below
to see the print version of Issue 66.  Or, click
each company name for the web version.)
(Articles on the second set of 34 companies
are in Issue #67 of Press for Conversion!):

pdf  3M Co
pdf 
Amdocs Ltd
pdf  Analog Devices Inc

pdf  AT&T
pdf  BAE Systems
pdf  Bank Hapoalim
pdf  Bezeq
pdf  Bharat Electronics Ltd
pdf  CAE Inc
pdf  Carlyle Group
pdf  Caterpillar Inc
pdf  Cellcom Israel
pdf  Cemex
pdf  Cisco Systems
pdf  CRH plc
pdf  Daewoo Engineering & Construction
pdf  Daimler AG
pdf  Delek Group
pdf  Dell Inc
pdf  Discount Investment Corp
pdf  Doosan Corp
pdf  Eaton Corp
pdf  Elbit Systems
pdf  EMC Corp
pdf  Evraz Group
pdf  Fiat Industrial
pdf  Fiat SpA
pdf  Finmeccanica
pdf  Fujitsu Ltd
pdf  Hewlett-Packard Co
pdf  Hitachi Ltd
pdf  Honeywell International
pdf  Hyundai Motor Co
pdf  Hyundai Heavy Industries


Additional resources from this issue:
Israeli Spy Companies:
Verint and Narus

State-owned Israeli War Industries:
IAI
, IMI and Rafael

Vertex Venture Capital:
Investing in Israeli High-Tech Companies

Table listing CPP Investments

Poster


Table listing CPP Investments worth $1.5 billion in 66 companies supporting Israel's military, police, surveillance, prison-industrial complex.

Table listing additional investments totalling $4.5 billion by six large Canadian pension funds (including CPP) in the 66 companies researched by COAT.

 

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References

2010 Form 10-K, EMC Corporation
www.sec.gov/Archives/edgar/data/790070/000119312511050151/d10k.htm

Shmulik Shelah, "EMC leads $15m round for Varonis," Globes, January 22, 2009.
www.globes.co.il/serveen/globes/docview.asp?did=1000419282

Contracts to EMC
www.fedspending.org/fpds/search.php

Partnerships
www.emc.com/about/emc-at-glance/partnerships/technology-alliances/index.htm

Companies that Profit from the Israeli Occupation of Palestinian Land
www.interfaithpeaceinitiative.com/oldsite/ProfitingFromOccupation.htm

Corporate Profile - About Ė EMC
www.emc.com/about/emc-at-glance/corporate-profile

Cooperation Between Israel and the State of Massachusetts, AICE
www.jewishvirtuallibrary.org/jsource/states/MA.html

Yossi Melman, "Did Israeli officials help U.S. firms win security tenders?" Haaretz, January 1, 2009.
www.haaretz.com/print-edition/news/did-israeli-officials-help-u-s-firms-win-security-tenders-1.266892

"EMC to supply storage systems to IDF," Globes, September 4, 2006.
www.globes.co.il/serveen/globes/docview.asp?did=1000129781

Israeli Government Selects EMC as Enterprise Content Management Platform Standard, December 6, 2011.
www.emc.com/about/news/press/2011/20111206-01.htm

Shmulik Shelah, "EMC and NetApp win IDF storage contract," Globes, December 13, 2010.
www.globes.co.il/serveen/globes/docview.asp?did=1000607785

Doron Kempel
http://investing.businessweek.com/research/stocks/private/person.asp?personId=1203850

Gili Raanan
http://investing.businessweek.com/research/stocks/private/person.asp?personId=625728