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


in 2011

$64 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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Investments in HP by other
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Total = $196,989,000

With assets of US$120 billion, this US multinational is one of the worldís largest companies. Although HPís annual military revenues in 2010 totalled US$972 million, this was a trifling 0.8% of its total revenues. Nevertheless, HPís military sales were large enough to put this information technology (IT) giant into 65th place among the worldís top war industries. In 2008, HP ranked even higher, reaching 45th place.

Between 2000 and 2009, HP had about US$18.35 billion worth of contracts with the US federal government. About 70% of these (US$12.7 billion) were with departments and agencies of the US military, primarily the Navy (US$8.84 billion). The company was among the Pentagonís top contractors in 2008 and 2009, when it ranked 32nd and 25th, respectively.

Tom Hogan, HPís senior Vice President of Software, has said that "Israel is the companyís winning ticket." In the early-2000s alone, HP invested US$5.5 billion in Israelís high-technology sector. This, said Israelís online ynetnews in 2006, was "the largest investment by any firm in Israeli hi-tech."

With 900 employees, HP Israel has an impressive client list which includes Israelís Police and the Ministries of Defence, Justice and the Interior. Among HP Israelís corporate customers are several providing key services to Israelís military, such as Cellcom, Bank Hapoalim, Bank Leumi, the Israel Discount Bank (IDB) and the Mizrahi Tefahot Bank (MTB). (See Leumi, IDB and MTB in table "CPP Investments.") Another customer of HP Israel is Comverse Technologies, the parent company of Verint. (See "Israeli Spy Companies.")

HP also supplies state-owned arms makers: Israel Military Industries (IMI) and Israel Aerospace Industries (IAI). HP lists IMI as a client, and IAIís Elta Systems uses HP hardware and software in its L-8356 Electronic Warfare Analysis Station. (See "State-owned Israeli War Industries.")

In January 2011, HP began providing the secret IT unit of Israelís Army with a Configuration Management Database. Then, in May, HP began providing an Enterprise Resource Planning System to Israelís Army "estimated in the hundreds of millions" of Israeli shekels. (Note: A hundred million shekels is worth US$26 million.)

Israelís business paper, Globes, reported in 2009 that HP won a US$15 million, three-year contract (with a two-year option) to install visualisation systems on Israeli military computers. These programs, which allow "a single computer ...[to] obtain all network resources," are made by VMWare. (See VMWare in table "CPP Investments.")

HP owns Electronic Data Systems (EDS) Israel. It led the consortium that won a US$8-10 million contract in 1999 to develop, install and maintain the "Basel System" for Israelís Ministry of Defense and the Israeli police. Financed by the US government, this automated biometric access-control system uses facial dimensions and hand geometry. This biometric information, and other personal data, is stored on magnetic ID cards that Palestinians must use to get through major checkpoints into Israel and to move about within the occupied territories.

Israelís Coalition of Women for Peace (CWP) says Israeli checkpoints are "isolating Palestinians from each other, separating communities." The checkpoints make many Palestinian towns and cities "almost inaccessible" from each other. The UN Office for the Coordination of Humanitarian Affairs reported in 2007, that 2.4 million West Bank residents "are affected by physical impediments to movement." Chief among these are 100 checkpoints.

The "Basel System" is part of a discriminatory system applied only to Palestinians, and not to Israelis. As the Coalition of Women for Peace point out

"The quarter of a million Israeli settlers in the West Bank do not have to pass through the checkpoints. They travel using bypass roads, available only to them, which connect West Bank settlements to each other and to Israel."

HPís "Basel System" is also used at checkpoints controlling the access of 25,000-30,000 Palestinians with "work permits" who enter Israel from Gaza and the West Bank. Checkpoints between the West Bank and occupied East Jerusalem also use the "Basel System."

HP is also involved in another mechanised system of control within Israel, namely the countryís ID card system. In 2008, HP landed a US$70 million contract to make five million biometric ID cards for Israelís Ministry of the Interior. HP also won a related US$2 million tender, through its subsidiary EDS Israel, to collect and systematise fingerprints and photographs of Israeli citizens.

When it purchased Compaq Computer Corp. in 2002, HP began providing and operating the "Aviv System" for Israelís Ministry of Interior. This population registration system includes the "databases for the population registry." HPís contract to administer this system was renewed in 2010 for three more years, bringing in another US$6 million for HP which had already received about US$26 million for this work prior to 2009.

Israelís ID card system, says the CWP, "reflects and reinforces ... [Israelís] political and economic asymmetries, tiered citizenship structure and restrictions on movement and access." As the CWP further explains:

"The Israeli ID system, which is used to privilege Jews and differentiate among all others, stems from a strategy of stratified citizenship....

"The Israeli ID cards can be grossly categorized by the color of their plastic casing: blue for Israeli citizens and permanent residents, orange/green for Palestinian in the oPt [occupied Palestinian territories]....

"Until 2003, the blue IDs included the label of Ďnationality,í under which Israeli citizens were listed as Jewish, Arab, Druze, Bedouin, etc. In 2003, the nationality label was replaced with asterisks. However, the ethnicity is still listed in the population registry and additional notations enable distinguishing between Jewish and non-Jewish Israeli identification card holders."

Israelís Globes business paper reported in 2006 that "HP Israel will assume full responsibility for the management and operation of the Navyís IT infrastructure." This included "computer and communications centers, information security and full end user support." This HP program, "implemented at a number of naval bases," was "the first of [its] kind" in the Israel Defense Forces (IDF). Israelís Navy has shelled civilian areas in Gaza, and attacked Gazan fishermen as well as ships carrying aid to Gaza.

Another 2006 contract, to supply 500 laptops "to various [Israeli] government offices" was won by HP.

In 2004, HP finished a three-year contract, financed by US military aid, to supply computer servers to Israelís Defense Ministry. This contract, said the Globes newspaper, was "one of the most prestigious in Israel."

In 2002, HP Israel won "a tender valued at [US]$3 million to become the exclusive provider of laser printers to the IDF and Ministry of Defense."

HPís military exports to Israel were mentioned by Israelís Haaretz newspaper in 2009 when a scandal broke regarding senior Israeli Defense Ministry officials who were investigated for passing insider information to help specific US companies win more than US$100 million in contracts. Haaretz said the "equipment was procured for Military Intelligence units involved in signals intelligence and encryption, as well as for the air force and other units." It said Israeli officials "leaked sensitive information from the closed bids made by companies participating in the tenders to companies they favored, helping them win contracts." Other companies involved included Cisco and EMC.



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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Financial news

Top 100 Defense Contractors, Defense News

Contracts to Hewlett-Packard Co.

Top 100 Defense Contractors, Govít Executive

Hewlett-Packard, Wikipedia

Avi Shauli, "HP exec: Israel is our winning ticket," ynetnews, November 20, 2006.,7340,L-3330211,00.html

Technologies of control: HPís involvement in the occupation industry, Coalition of Women for Peace, 2011.

"HP Israel wins navy IT outsourcing contract," Globes, August 14, 2006.

EL/L-8356 EW Analysis Station

Shmulik Shelah, "HP beats IBM in Army virtualization tender," July 15, 2009.

Help end Israelís human rights abuses. Boycott Israel now, January 21, 2009.

United Methodist Church Ė New England renews divestment efforts, May 27, 2010.

Company summaries

Hewlett Packard

"IBM wins $20-30m Defense Ministry tender," Globes, November 21, 2007.

"Company briefs," Globes, March 11, 2002

Yossi Melman, "Did Israeli officials help US firms win security tenders?" Haaretz, Jan. 1, 2009.