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

in 2011

$8 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)"
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With assets of US$86 billion, Hapoalim is the second largest bank in Israel. After the 1983 "Bank Stock Crisis," in which bankers manipulated stock prices and were eventually indicted, the Israeli government took over Hapoalim. It then became Israelís largest bank, and was privatized in 1996.

The Angolagate Scandal

In October 2009, when Israeli-Russian business tycoon, Arcadi Gaydamak, was indicted in Tel Aviv for laundering US$170 million through Bank Hapoalim, he fled to Russia. Several of the bankís senior executives were indicted for conspiring with Gaydamak. Later that month, Gaydamak was "found guilty of masterminding [US]$790 million worth of illegal arms trafficking to the Angolan government" during its civil war in the 1990s. The French court sentenced him in absentia to six years in jail. Through "Angolagate," Gaydamak also committed "bribery, tax evasion, fraud and embezzlement." His goal was to secure Angolan oil-drilling rights in exchange for the provision of weapons. When his French trial began in 2008, Gaydamak avoided French authorities by fleeing to Israel.

Funding War Industries

Over the years, Hapoalim has financed large weapons makers like Israel Military Industries (IMI), the countryís largest state-owned weapons manufacturer. In 2004, Israelís business paper, Globes, reported that because of a 1998 loan, IMI was still in debt to Hapoalim for US$110 million. (See "State-owned Israeli War Industries.")

Another Israeli military firm which has benefited from Hapoalimís financing is Aeronautics Defense Systems, which makes unmanned aerial vehicles. In 2010, Hapoalimís investment arm, Poalim Capital Markets, put US$3 million into Aeronautics. Poalimís website lists Aeronautics among its four "principal investments." When reporting on Aeronautics in 2011, the Calcalist, a daily business paper in Israel, reported that "all of the companyís assets, including its production plant and bank accounts are mortgaged to Bank Hapoalim and Bank Discount." (See Discount Investment Corp.) The paper notes that Aeronauticsí "debt to the two banks stands at hundreds of millions of shekels." (Note: There are about 4 shekels in a dollar.)

Aeronautics not only makes numerous unmanned drones for Israelís military, it also conducts military operations. Aeronauticsí website states:

"Making military history as the first civilian company to carry out all-inclusive operational missions for the Israeli Defense Forces (IDF), Aeronautics has been outsourcing its visual intelligence services for field security to the IDF since 2002."

Poalim also invested in PerSay, a spin-off from one of Israelís biggest intelligence-related firms, Verint. (See "Israeli Spy Companies.")

Hapoalim is a principal shareholder and creditor of Gilat Satellite Networks, which serves Israeli military and intelligence agencies.

Hapoalim has also given long-term financing to Enlight, an Israeli company whose "largest project is the installation of 45 PV [photovoltaic] facilities on the roofs of buildings at IDF [Israel Defense Forces] bases." Besides this US$8 million IDF contract, Enlight is also building wind turbines for six villages in the Israeli-occupied Golan Heights.

Financing the Occupation

The "Who Profits from the occupation" database, compiled by Israeliís Coalition of Women for Peace, reveals Hapoalimís complicity in financing the construction of illegal Israeli settlements in occupied Palestinian territories. Hapoalim also provides mortgages to homebuyers in these settlements and gives loans and financial services to their local government authorities. And, the bank has branches in occupied East Jerusalem and the Golan Heights, and benefits from access to the captive Palestinian monetary market.

Hapoalim has loaned to Israeli businesses in the occupied territories, and has financed the Jerusalem light rail project, which connects illegal Israeli settlements with the downtown core.

Mossad Chief on Board

One of Hapoalimís former directors, Nahum Admoni, was the CEO of Mekorot, Israelís National Water Co., which has overseen the plundering of water sources in the occupied territories. Admoni was also a director of the Discount Investment Corp. and Leumi LeíIsrael. (See Leumi in table "CPP Investments.") More significantly, this Hapoalim director was the chief of Israelís foreign intelligence agency, the Mossad, from 1982 to 1989. During his leadership of the Mossad, Israelís intelligence community was scandalized by the arrest of Jonathan Pollard, an Israeli spy in the US, as well as by revelations about Israelís role in the Iran-Contra scandal, and by their kidnapping of Mordechai Vanunu, an Israeli nuclear technician who blew the whistle on Israelís nuclear weapons.



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
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:
, IMI and Rafael

Vertex Venture Capital:
Investing in Israeli High-Tech Companies

Table listing CPP Investments


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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Dunís 100 Israelís Largest Enterprises

Bank Hapoalim

Ofra Edelman, "Gaydamak to post another $3.5m in bond for Hapoalim money laundering trial," Haaretz, October 28, 2009.

"Pasqua: Gaydamak was a French agent," Jerusalem Post, October 29, 2009.

Mukash Iskandirov, "Fertilizer Market In Kazakhstan," September 2003.

"IMI owes Bank Hapoalim $110m," Globes, September 6, 2004.

Tali Tsipori, "UAV co Aeronautics raises $28m," Globes, February 6, 2010.

Shay Aspril, "The Leumix method," Calcalist, January 21, 2011.,7340,L-4016755,00.html

Outsourcing services

Guy Griml, "Persay finishes raising $2.3 million," The Marker, February 26, 2007.

Israeli Military is Developing Tactical Mobile VSAT System, Space News, 2008.

Aviv Levy, "Hapoalim lends Enlight NIS 22m to build PV facilities," Globes, Feb. 20, 2011.

"Enlight to build wind farms at six Golan villages," Globes, August 23, 2011.

Bank Hapoalim

"Financing the Israeli Occupation: The Direct Involvement of Israeli Banks in Illegal Israeli Settlement Activity and Control over the Palestinian Banking Market," Who Profits from the Occupation, October 2010.

Nahum Admoni