Norway's, Fund, Excludes, Israeli, Firms, Over, Ethics,- Minister
line
Last update: 8/23/2010 9:41:10 AMOSLO (AFP)--Norway's state pension fund, one of the world's largest sovereign wealth funds, has excluded two Israeli companies for "unethical activity" linked to settlement building in the Palestinian territories, the Norwegian government said Monday.
line
According to the finance ministry, the so-called oil fund, which contains nearly all state revenues from the country's booming oil and gas industry, has sold its holdings in Africa Israel Investments Ltd. (AFIL.TV), the largest shareholder of Danya Cebus Ltd. (DNYA.TV), which the fund says is involved "in developing settlements in occupied Palestinian territory."
line
"Several United Nations Security Council resolutions and an International Court of Justice advisory opinion have concluded that the construction of Israeli settlements in occupied Palestinian territory is prohibited under [the Geneva] Convention," Finance Minister Sigbjoern Johnsen said in a statement.
line
"I have therefore accepted the recommendation of the Council on Ethics and am excluding Africa Israel Investments and Danya Cebus from the fund's investment portfolio."
line
The Norwegian fund has sold all its shares in Africa Israel Investments, which were valued at 7.2 million kroner ($1.15 million) at the end of 2009 and has ruled out further investments in the company and its subsidiary.
line
The government also said Monday the pension fund would exclude a Malaysian forestry company called Samling Global Ltd. (3938.HK) due to "extensive and repeated breaches" of regulations of its activities in Sarawak, Malaysia and Guyana.
line
"The Council on Ethics has assessed Samling Global, and concluded that the company's forest operations in the rainforests of Sarawak and Guyana contribute to illegal logging and severe environmental damage," Johnsen said.
line
At the end of 2009, Norway's state pension fund held NOK8.1 million in stock in Samling Global, which have now been sold.
line
Ethical directives from the government bar the fund from investing in manufacturers of weapons considered "particularly inhumane" and in companies known to be involved in large-scale human rights violations, corruption, the tobacco industry or environmental pollution.
line
About 50 companies have already been blacklisted by the fund, including Boeing Co. (BA), Wal-Mart Stores Inc. (WMT), European Aeronautic Defence & Space Co. (EAD.FR) and BAE Systems PLC (BA.LN).
line
(END) Dow Jones NewswiresAugust 23, 2010 09:41 ET (13:41 GMT)
