Irish State to divest almost €3m from companies engaged in Occupied Palestinian Territory

Finance Minister Michael McGrath said Ireland's main fund would divest from six companies that have certain activities in the occupied territories

Mr McGrath said the divestment will be implemented as soon as possible over the coming weeks. Photo credit: Brian Lawless/PA Wire

The Irish State is to divest almost €3m from companies engaging in activities in Occupied Palestinian Territory. 

Finance Minister, Michael McGrath announced on Friday morning that the Irish Strategic Investment Fund (ISIF), the State's main fund which is controlled and managed by the National Treasury Management Agency, will divest from six companies in its global equity portfolio that engaged in activities within Israeli settlements. 

The six companies comprise Bank Hapoalim BM, Bank Leumi-le Israel BM, Israel Discount Bank, Mizrahi Tefahot Bank Ltd, First International Bank and Rami Levi CN Stores, with the divestment decision relating to shareholdings with a total value of €2.95m.

“I have been advised by the NTMA that it has decided to divest from certain ISIF global portfolio investments in companies that have certain activities in the Occupied Palestinian Territory," said Mr McGrath.

"ISIF has determined that the risk profile of these investments is no longer within its investment parameters and that the commercial objectives of these investments can be achieved via other investments."

"I am advised ISIF will keep under review the alignment of relevant investments within its investment parameters and commercial objectives."

The decision follows lengthy criticism regarding where the Irish State invests its money, with Mr McGrath confirming earlier this year that at the end of 2022, the NTMA had direct investments totalling €4.1m across 11 companies engaged in activities across Occupied Palestinian territories. 

However, earlier this month, ISIF Director, Nick Ashmore confirmed to an Oireachtas Committee that when pooled investments were included as well as segregated direct investments, the total amount increased to €13.6m.

New legislation was proposed last year which would force ISIF to divest from companies operating within occupied Palestinian territory. However, the bill had been paused for several months as the Government debated the best way to move forward, with the Department of Finance and the NTMA raising several issues and concerns with the legislation. 

Speaking last month, Sinn Féin TD, Pearse Doherty said that while the NTMA could divest from these companies, it would not do so on its own, reiterating the need for legislation. 

However, Mr McGrath announced this morning that the divestment will be implemented "as soon as possible" over the coming weeks.

"While recognising the independence of ISIF in the management of the investment portfolio, I believe this is the correct investment decision in respect of the assets it manages on behalf of the State," Mr McGrath concluded.